Firm gains have redeveloped in feeder cattle
futures at midday as traders have steeped back into the market.
Additional support is moving back into some live cattle contracts,
although a trade volume is limited. Overall market activity is likely to
remain sluggish through the rest of the Tuesday trading session. Corn
prices are lower in light trade. July corn futures are 7 cents lower.
Stock markets are lower in light trade. The Dow Jones is 34 points lower
while Nasdaq is down 4 points.
LIVE CATTLE:
Mixed trade is seen through live cattle futures
with steady to 60 cent gains seen in nearby contracts while light loses
have developed through deferred contracts. Narrow market moves are seen
through the rest of the complex as traders are looking for very little
additional outside or fundamental market activity to develop. This could
limit widespread price shifts across the live cattle trade. Cash cattle
activity remains light Tuesday with bids and asking prices still
undeveloped as packers and feeders return from the long holiday weekend.
Show lists are generally larger with Nebraska showing a few less market
ready steers and heifers. But the overall trend is a larger number of
cattle available on lists early in the week. Beef cut-outs at midday are
mixed, $1.39 higher (select) and down $0.37 per cwt (choice) with light
movement of 64 total loads reported (24 loads of choice cuts, 27 loads
of select cuts, 8 loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Firm buyer support has returned to the feeder
cattle futures complex with short covering activity developing following
strong liquidation seen through the end of last week. Even though early
losses were seen across the entire cattle market, buyers seemed willing
to hang around the market and wait until selling pressure ran out of
gas. This has quickly allowed nearby contracts to post triple digit
gains, moving $1 to $1.50 per cwt higher at midday. Even though the
market still remains weak and is focusing on the larger than expected
placements seen in April, the ability to hold prices near $148 per cwt
could help to establish some stability through the rest of the week.
LEAN HOGS:
Mixed trade continues to hold through lean hog
futures, but the lack of support in cash markets Tuesday morning and
pullback in front month June futures seems to be putting a cautionary
tone through the entire nearby market. Most of the selling pressure is
seen in June and July futures, although this pressure is focusing on
position taking after setting contract highs late last week. The overall
market remains bullish and is not likely to change significantly on
just one days market prices. Cash prices are lower on the National
Direct morning cash hog report. The weighted average price lower $0.83
at $70.26 per cwt with the range from $67.00 to $71.50 on 2,895 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 150 loads selling with prices adding 0.18 per cwt. Lean
hog index for 5/25 is at $76.34 up $0.09 with a projected two-day index
of $76.45 up $0.11.
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