Light trade continues to develop through the
livestock markets as traders position holdings for the weekend. After
aggressive market pressure in live cattle and feeder cattle markets the
focus has moved to short covering activity during the Friday session.
This may allow for increased market activity over the next several
sessions. Lean hog futures are mixed in light trade with early pressure.
Corn prices are higher in light trade. July corn futures are 3 cents
higher. Stock markets are mixed in light trade. The Dow Jones is 11
points higher while Nasdaq is down 15 points.
LIVE CATTLE:
Mixed trade has developed in live cattle futures
with traders trying to square positions at the end of the week
following a volatile week. June live cattle futures has backed away from
early support, with prices now trading 70 cent losses, while most other
contracts have been able to hold light 5 to 30 cent gains at midday.
The potential to bring a sense of stability back into the market at the
end of the week could bring commercial traders back to the table early
next week. But there is still growing concern that long-term liquidation
may develop and prices could continue to shift lower through the next
month. Cash markets remain quiet Friday morning with a few bids
redeveloping but very little active interest seen at midday. Bids are
seen at $127 in the South and $202 in the North. But this is still well
below asking prices expected to be at $130 or higher in the South and
$210 and higher. At this point it is uncertain if either side will even
continue to step to the table any more this week in order to get
business done or if they will just call it a week and come back after
the weekend with a fresh perspective, hoping for better luck after more
time has passed. Beef cut-outs at midday are mixed, $0.86 lower (select)
and up $0.13 per cwt (choice) with light movement of 60 total loads
reported (29 loads of choice cuts, 15 loads of select cuts, 10 load of
trimmings, 6 loads of ground beef).
FEEDER CATTLE:
Buyer activity has moved into feeder cattle
futures midday Friday, allowing traders to break away from the choppy up
and down moves seen over the morning markets, as nearby contracts have
posted firm gains nearing $1 per cwt. This has allowed commercial buyer
activity to slowly move back into the market at the end of the week,
although it is not changing the overall tone of the market after the
strong market liquidation seen in the last several sessions. Increased
market volatility is expected to be seen through the next couple of
weeks, which may bring even more price swings to the complex.
LEAN HOGS:
Early pressure has eased across lean hog markets
as traders have continued to focus on market stability in the lean hog
complex through the Friday session. Trade has quickly backed away from
triple-digit losses, but the downward pressure in most contracts
continues to hold in most contracts. This seems to be the focus in all
but summer markets, which has been the highlight of the lean hog market
over the last several weeks as traders seem to have focused on these
markets with the rest of the complex being left in the dust. With July
and August markets now able to scratch out moderate gains, the focus is
now based on firm buyer support and could bring additional market
support back through the rest of the month. Cash prices are lower on the
National Direct morning cash hog report. The weighted average price
fell $0.15 at $83.82 per cwt with the range from $79.00 to $85.00 on
2,855 head reported sold. Cash prices are lower on the Iowa/Minnesota
Direct morning cash hog report. The weighted average price fell $0.22 at
$84.50 per cwt with the range from $79.00 to $85.00 on 845 head
reported sold. The National Pork Plant Report reported 84 loads selling
with prices gaining $0.65 per cwt. Lean hog index for 6/14 is at $82.93
up $0.83 with a projected two-day index of $84.06 up $1.13.
No comments:
Post a Comment