Sharp losses have developed in lean hog futures trade as traders are quickly backing away from any sign of support seen Thursday. Cattle markets are lightly traded in mixed direction with very little activity seen through the morning. Corn prices are lower in light trade. May corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 14 points higher while Nasdaq is up 33 points.
LIVE CATTLE:
Live cattle futures remain focused on narrow trading ranges as most commercial and investment traders have remained on the sidelines through the end of the week. Some additional market shifts are expected in the last hour of trade as traders prepare for the upcoming cattle on feed report. But the overall direction of the market is not expected to be significantly changed over the near future, but the direction of cash trade could bring additional momentum to the market. Cash cattle markets have not traded yet Friday morning, although bids have continued to develop in the South at $126 per cwt and $210 in the North. There are questions concerning just how much cash cattle trade needs to, or will be done this week, as packers are increasingly sluggish when it comes to chasing prices higher this week. Asking prices remain at $132 and higher in the South and $217 to $218 in the North. Trade that does develop may be seen around or after the release of the cattle on feed report Friday. Beef cut-outs at midday are lower, $0.21 lower (select) and down $0.19 per cwt (choice) with light movement of 68 total loads reported (36 loads of choice cuts, 13 loads of select cuts, no loads of trimmings, 20 loads of ground beef).
FEEDER CATTLE:
Narrow trade ranges are holding in across the entire cattle complex, with feeder cattle markets mixed following sluggish morning activity. Contracts are hoovering from 35 cents lower to 25 cents per cwt higher at midday as traders continue to look for additional direction from both live cattle trade and the upcoming cattle on feed report. Very little activity is likely through the end of the session, but the light volume adds price shifts based on just a few traders still in the market.
LEAN HOGS:
Sharp triple-digit losses are seen in most lean hog contracts as traders continue to adjust to the wild price shifts seen over the past week. Strong gains seen Thursday have been eliminated with additional downside market pressure seen across the complex. April futures are holding a $1.95 per cwt loss, falling to $67.40 per cwt while May and June contracts are trading near $2.50 per cwt lower. The one-day spike in price levels seen Thursday brought more volatility into the market than anything else, with the overall tone of the market still weak. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.56 at $64.47 per cwt with the range from $60.00 to $66.00 on 2,264 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 122 loads selling with prices gaining $1.57 per cwt. Lean hog index for 3/22 is at $71.29 down $0.12 with a projected two-day index of $70.91 down $0.38.
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