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Frozen Beef Stoks Down Three Percent


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By Dennis Smith

Follow me on Twitter @denniscattle

Thursday January 23, 2020

LEAN HOGS:

I have to see it to believe it. Cutout needs to jump above $83.00 and spur an impressive move higher in the cash market. Neither have occurred yet. Futures are bumping up against resistance but these levels likely wont be penetrated until the fundamentals drive them through it. Cash is looking steady to firm for today with winter storm activity hampering movement of animals. Massive downward revisions in hog slaughter in tandem with dropping weights is presenting the idea, the possibility that numbers are dropping off. Weekly export numbers will be released Friday morning. The cold storage report was not bullish, showing record large stocks of pork.

LIVE CATTLE:

Active cash trade occurred in the south at $1.24. The bull spreads performed strong yesterday with selling erupting in the back end of the market. Beef is expected to grind higher over the next several weeks if not longer. IMO the long term bullish fundamental development in the wake of phase one.effectively opening the Chinese market to U.S. beef has not been priced into the futures market. Demand, beef demand is outstanding. The cold storage report was friendly showing 3% fewer beef stocks than last year. Not sure if it happens today but look for the uptrend to resume with cash steer prices headed north of $1.30 and possibly clear to $1.40 this spring. If you have two minutes take a look at my two minute drill discussing the cattle market.

https://youtu.be/oqLov4Hnjgs

For a free 30-day trial to the evening livestock wire please send an email to: dennis.smith@archerfinancials.com



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About the author


Dennis Smith has been a full service commodity broker specializing in grain and livestock trading for over 25 years. Dennis has a wide range of customers, many of whom are grain and livestock producers. Dennis develops and helps execute hedging and speculative strategies in his Daily Livestock Wire which is prepared each afternoon exclusively for his customers.

Dennis grew up in Central Illinois before launching his brokerage career.

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