Light gains are holding in cattle futures with
extremely light volume developing through the morning. The inability to
spark increased market interest at the end of the week may limit overall
activity early next week and overall follow-through support. Corn
prices are higher in light trade. July corn futures are 6 cents higher.
Stock markets are higher in light trade. The Dow Jones is 163 points
higher while Nasdaq is up 46 points.
LIVE CATTLE:
Trade volume is sluggish with no additional
fundamental or technical market direction developing through the
complex. This is keeping traders on the sidelines for the most part and
overall market activity very light. Volume remains light through the
morning, which has allowed prices to hold moderate gains and prices to
keep these moderate price moves in a sluggish shift. But the overall
lack of direction may limit movement at the end of the session. June
contracts are expected to close above $123 per cwt which will be
supportive and could bring additional commercial interest to the market
next week. Cash cattle trade appears to be done for the week with total
sales in Nebraska expected to be over 25,000 head according to some
additional seen overnight. With prices falling generally $8 per cwt in
the North from last week, and $3.50 to $4 in the South, packers seem to
be sitting pretty good for the time being, and willing to hold off until
next week. Beef cut-outs at midday are steady to lower, $0.50 lower
(select) and down $0.24 per cwt (choice) with light movement of 61 total
loads reported (38 loads of choice cuts, 18 loads of select cuts, no
loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Light midday gains are starting to trickle into
front month May contracts due more to lack of market activity than
anything else. This could draw additional support back into the complex.
The rest of the market is holding firm gains which have been in place
through early trade, but unable to show significant market volume during
the Friday session. Gains in August through November contracts are
trading in a tight trading range from 70 to 90 cents per cwt although
market activity remains extremely light.
LEAN HOGS:
Trade activity remains inactive through the
futures complex with narrowly mixed moved holding across the entire
complex. This limited activity is keeping the entire market sluggish as
traders seem to be looking into next week already as they have already
stepped out of the market for the most part. June contracts remain
moderately lower in the same range as seen through much of the morning
with a 30 cent loss, holding just below $79 per cwt while the rest of
the summer contracts are holding steady to slight gains but still
generally inactive This inability to move markets significantly will
keep markets quiet through the end of the session. Cash prices are lower
on the National Direct morning cash hog report. The weighted average
price lost $0.52 at $70.11 per cwt with the range from $66.00 to $71.50
on 2,151 head reported sold. Cash prices are lower on the Iowa Minnesota
Direct morning cash hog report. The weighted average price lost $0.63
at $70.50 per cwt with the range from $66.00 to $71.50 on 261 head
reported sold. The National Pork Plant Report reported 141 loads selling
with prices adding 0.25 per cwt. Lean hog index for 5/17 is at $74.92
up $0.78 with a projected two-day index of $75.55 down $0.63.
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