Moderate to strong buyer support is developing
in cattle trade as commercial buyer support has continued to develop
across both feeder cattle and live cattle markets. Even though
lackluster interest is seen in cash cattle and beef values traders are
stepping into the futures trade as they focus on longer-term supply
issues. Hog futures remain under pressure as traders continue to quickly
back away from strong gains developing Thursday. Corn prices are lower
in light trade. May corn futures are 2 cents lower. Stock markets are
higher in light trade. The Dow Jones is 12 points higher while Nasdaq is
up 2 points.
Strong market buyer activity is steadily moving
into live cattle trade Friday morning even though cash cattle support is
unavailable at this time. Futures have redeveloped with front-month
April contracts making a run back at $120 per cwt. A close above $120
per cwt at the end of the week would be a significantly shot in the arm
on the weekly chart, creating some much needed bullish momentum. April
futures are trading 87 cents higher at $119.67 per cwt at midday with
June and August contracts holding triple digit gains. Given the late day
market shifts over the last several trading sessions, a strong market
bounce in the last hour of trade is quite possible. Cash cattle markets
remain untraded at midday with bids readily available in all areas at
$122 to $124 live basis and $194 to $200 dressed basis. It is expected
that bids will improve as the day goes on. Asking prices are seen from
$128 and higher in the South and $205 and higher in the North. It is
uncertain how much softer these asking prices will get given the
strength in futures through the morning. Beef cut-outs at midday are
lower, $1.24 lower (select) and down $0.25 per cwt (choice) with active
movement of 109 total loads reported (63 loads of choice cuts, 17 loads
of select cuts, 8 loads of trimmings, 21 loads of ground beef).
FEEDER CATTLE:
Strong end-of-week buyer support is redeveloping
in the feeder cattle futures complex once again Friday. This is posting
triple-digit gains in all nearby contracts with April futures holding
$1.30-per-cwt gains. The most recent support has pushed front-month
futures above $133 per cwt as traders continue to look for additional
underlying support during early April in an attempt to find additional
interest in the live cattle market. Prices are still $3 per cwt under
March resistance levels but with the renewed support seen over the last
couple of trading sessions, commercial support is stepping back into the
market.
LEAN HOGS:
Lean hog futures have turned lower in light to
moderate pressure Friday morning as April contracts have eased through
the morning with more aggressive selling activity seen in summer
contracts. The softness June through August contracts is countering the
triple-digit gains that developed Thursday and is leaving traders in a
position where they are desiring to cover positions before the weekend.
Light trade is expected most of next week, which is leading to some of
the activity Friday. Cash prices are lower at midday on the National
Direct morning cash hog report. The weighted average price fell $1.21 at
$57.84 per cwt with the range from $54.00 to $59.75 on 4,057 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 118 loads selling with prices adding $0.70 per cwt. Lean
hog index for 4/5 is at $66.15 down $0.45 with a projected two-day
index of $65.73 down $0.42.
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