Friday, April 21, 2017
Today’s Spotlight Market
This afternoon, livestock merchants will keep late after the shut of buying and selling as the USDA will launch knowledge for the month-to-month Cattle on Feed report due out at 2 pm Chicago time. Here are the typical pre-report estimates for the three most important classes coated on this report:
Placements (March 2017): 106.three% of final yr
Marketings (March 2017): 109.2% of final yr
On-Feed (April 1): 99.6% of final yr
Here in Chicago, we’re lastly able to name an finish to winter and start to indulge within the enjoyable actions of spring together with getting the grill out of the storage and put together for barbeque season. However, these tasty steaks and briskets won’t come at discount costs this season as robust retail demand for beef is encouraging meat packers to bid market prepared Cattle costs larger. Cash market sources report that meat packers have been paying $130 per hundredweight for Cattle within the southern Plains, a steep premium to the lead-month June Live Cattle futures that are presently buying and selling close to the 116.500 worth degree as of this writing. Wholesale field beef costs are operating about $5 larger than final week which displays the present robust demand for beef from retailers and eating places. Grillers can take some solace that each pork and poultry costs will not be seeing the robust will increase like for beef so we may even see grillers turning in the direction of pork chops or hen legs as an alternative of steaks and burgers for his or her barbecue feasts this summer time.
Looking on the every day chart for June Live Cattle futures, we discover costs made a brand new contract excessive at 117.475 on Thursday, earlier than some profit-taking promoting from weak longs moved costs a few full level decrease by the shut of buying and selling. However, the commerce stays firmly within the bull camp with costs presently properly above each the 20 and 200-day shifting averages and the present $16 futures low cost to money including help to the market. We do notice that the 14-day RSI has moved into overbought territory with a present studying of 75.03, so we could also be due for a near-term correction in costs, particularly if we see money costs begin to retreat. However, the massive futures to money worth low cost might cushion the extent of any futures worth correction. Thursday’s excessive at 117.475 seems to be the brand new resistance degree for the June futures, with chart help seen on the April 5 low of 108.675.
Mike Zarembski, Senior Commodity Analyst
SOURCE: FuturesBlogs – Read whole story here.