Livestock Markets See Volatility Amid Bird Flu Concerns and Trade Developments
Livestock markets are experiencing significant volatility as concerns over the spread of bird flu, particularly in Asia, and developments in trade agreements weigh on prices. Despite the risks, some analysts are more bullish on cattle prices in the long term. The US Department of Agriculture's world agricultural supply-demand estimates, scheduled for release on Friday, are expected to reflect several changes. Meanwhile, Argentina has allowed detained containers of beef to ship abroad, and Tyson Foods Inc. reports no drop in US consumer confidence in poultry.
Key Takeaways:
- CME hogs are mostly weak on profit taking, spreading, fund buying, and local selling that is stirring volatility.
- Market bulls are taking periodic jabs at 68.00-cent psychological resistance in the May through July contracts, which if breached might trigger buying interest.
- June hogs are up 30 points at 67.75 cents a pound, while July hogs are down 22 points at 67.50 cents a pound.
- The Chicago Mercantile Exchange lean hog contract will undergo a permanent expanded daily price limit change to 3.00 cents a pound from its present 2.00-cent maximum beginning May 22.
*(Argentina) has allowed detained containers of beef to ship abroad, clearing the way for exports.
*Tyson Foods Inc. reports no drop in US consumer confidence in poultry despite the spread of bird flu in other parts of the world.
*The US Department of Agriculture's world agricultural supply-demand estimates, scheduled for release on Friday, are expected to reflect several changes.
*Australia and Japan have agreed to fast track a study on a proposed free trade agreement, clearing the way for possible formal negotiations as early as late 2006.
*The Canadian Food Inspection Agency has concluded its investigation of "animals of interest" related to the confirmation of a six-year old dairy cow in British Columbia with bovine spongiform encephalopathy.
*Shipments of live hogs from Canada during calendar-year 2006 are expected to jump from levels achieved during 2005 while pork product exports were seen declining.
Statistics:
*June hogs are up 30 points at 67.75 cents a pound.
*July hogs are down 22 points at 67.50 cents a pound.
*The Chicago Mercantile Exchange lean hog contract will undergo a permanent expanded daily price limit change to 3.00 cents a pound from its present 2.00-cent maximum beginning May 22.
*Argentina has allowed detained containers of beef to ship abroad, clearing the way for exports.
*1,542 detained containers of beef were detained by the Argentine government, and 150 of them were allowed to ship abroad.
*Tyson Foods Inc. reports no drop in US consumer confidence in poultry despite the spread of bird flu in other parts of the world.
*The US Department of Agriculture's world agricultural supply-demand estimates, scheduled for release on Friday, are expected to reflect several changes.
*Australia and Japan have agreed to fast track a study on a proposed free trade agreement, clearing the way for possible formal negotiations as early as late 2006.
*The Canadian Food Inspection Agency has concluded its investigation of "animals of interest" related to the confirmation of a six-year old dairy cow in British Columbia with bovine spongiform encephalopathy.
*Shipments of live hogs from Canada during calendar-year 2006 are expected to jump from levels achieved during 2005 while pork product exports were seen declining.
Sources:
*Standard & Poor's Ratings Services
*The New York Times
*AP
*Argentine Beef Consortium
*Economy Minister Felisa Miceli
*Tyson Foods Inc.
*U.S. Department of Agriculture
*U.S. Department of Agriculture Secretary Mike Johanns
*Chicago Mercantile Exchange
*Australian government
*Japanese government
*Dow Jones Newswires