Follow through gains have developed through the livestock market with lean hog trade leading the complex higher. This move higher in the hog market is causing the most surprise in the market with the potential for limit higher price moves in nearby contracts. Cattle markets are moderate at best, but the firmness in the market is a positive change following the sharp early week pressure seen Monday. Corn prices are higher in light trade. May corn futures are 6 cents higher. Stock markets are higher in light trade. The Dow Jones is 236 points higher while Nasdaq is up 40 points.
LIVE CATTLE:
Firm buyer support is seen across live cattle futures with traders looking for additional buyer activity during the last couple hours Tuesday. Following sharp losses Monday, futures have regained market support and the potential to regain the momentum seen last week. Even though some uncertainty seems to be seen in boxed beef values over the last couple of days, there is still strong consumer support developing in the cattle market as traders are looking for traders to move back into both nearby and deferred contracts through the end of the month. Cash cattle markets remain inactive with bids and asking prices both undeveloped and poorly defined Tuesday morning. The expectation that most interest will be pushed into the second half of the week will likely move the emphasis to keep most packers on keeping bids from developing until Wednesday or later. At this point it is uncertain if feedlot managers are waiting to see if packers are willing to offer bids before establishing firm asking prices, or if they are focusing on the movement in the futures market before setting the asking price levels for the week. Beef cut-outs at midday are mixed, $2.13 higher (select) and down $0.20 per cwt (choice) with light movement of 68 total loads reported (35 loads of choice cuts, 9 loads of select cuts, 15 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have turned mixed at midday after holding firm gains through the entire morning. The inability to draw additional buyer support at midday may create some underlying concerns not only late in the day, but through the rest of the week. May futures are the only contract holding losses at the current time with all other futures trading 50 to 90 cents higher. This may spark additional buyer support through the rest of the complex.
LEAN HOGS:
Follow through buyer support has continued to quickly develop across all nearby lean hog futures as traders moved into the complex. The combination of higher cash hog trade in the morning report added to the increased support through the complex and is pushing nearby support to gains nearing $2 per cwt. The overall support may quickly not only pull prices off of support levels, but give commercial traders a springboard to move into the spring and summer markets which could build into additional market momentum. Cash prices are higher at midday on the National Direct morning cash hog report. The weighted average price added $0.27 at $53.72 per cwt with the range from $49.00 to $54.50 on 5,459 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.29 at $54.24 per cwt with the range from $49.00 to $54.50 on 2,920 head reported sold. The National Pork Plant Report reported 199 loads selling with prices fell $0.51 per cwt. Lean hog index for 4/21 is at $60.49 down $0.61 with a projected two-day index of $60.16 down $0.33.
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