Sharp gains have quickly moved into lean hog
futures with traders focusing on strong nearby buyer support. This has
moved July and August contracts to new contract highs as traders not
only pushed strong support into nearby trade, but also through most
deferred contracts. Aggressive losses in cattle markets have been
quickly trimmed at midday with trader interest seemingly slowing
significantly over the last hour of trade. Corn prices are higher in
light trade. July corn futures are 5 cents higher. Stock markets are
higher in light trade. The Dow Jones is 62 points higher while Nasdaq is
up 2 points.
LIVE CATTLE:
Light losses are seen late Friday morning in
live cattle futures as traders are heading toward the last hour of
trade. With very light trade seen in the market, the inability for
additional selling pressure to step back into the market has allowed
losses to quickly back away from firm triple-digit moves in nearby
contracts, to current shifts lower of 2 to 40 cents per cwt. The overall
lack of trade volume in the market continues to be the largest factor
in the complex are looking past early next week with the upcoming
holiday on Tuesday, but now are focusing on most traders not stepping
into the market until the middle of the week or later. Cash cattle trade
is expected to be essentially done for the week with some clean-up
trade possible through the rest of the day. A few bids have developed
during the morning at $119 live basis and $190 dressed basis, and
reports of a few cattle trading in the North at $119 live basis for
delayed delivery. At this point, with prices falling $3 per cwt in the
South and $4 to $5 in the North from last week, the market seems to have
been set, and packers will be willing to gain access to additional
numbers if the opportunity arises before month end. Beef cut-outs at
midday are lower, $1.39 lower (select) and down $1.31 per cwt (choice)
with light movement of 75 total loads reported (42 loads of choice cuts,
16 loads of select cuts, 6 loads of trimmings, 12 loads of ground
beef).
Feeder Cattle:
Feeder cattle futures remain lower late Friday
morning, but traders have quickly backed away from the aggressive triple
digit losses that have held the first couple hours of trade. Even
though nearby lean hog futures continue to trade 30 to 40 cents per cwt
lower, the fact that markets have moved $1.50 to $2 per off of market
lows during the session and likely will close the session higher is
significant in helping to draw additional support back into the complex
at the end of the month. This may help to stimulate some much needed
market stability that had been focused upon over the last couple of
trading sessions. Light trade is expected to be seen through the rest of
the session, but the lack of trade interest may keep markets in a wide
price shift. .
LEAN HOGS:
Light trade is seen through lean hog futures at
midday, although the aggressive support which developed through the
morning has continued to maintain early price rallies. This appears to
be able to hold contract highs in both July and August contracts through
the end of the month. The ability to maintain these levels, would help
stimulate additional strong chart support through the entire lean hog
futures over the next couple of weeks. August futures continue to lead
the market higher with a $2.50 per cwt rally at midday as prices are
holding at $83.25 per cwt. Cash prices are lower on the National Direct
morning cash hog report. The weighted average price fell $2.08 at $84.96
per cwt with the range from $82.00 to $87.00 on 2,496 head reported
sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash
hog report. The weighted average price fell $2.35 at $86.11 per cwt with
the range from $82.00 to $87.00 on 395 head reported sold. The National
Pork Plant Report reported 115 loads selling with prices falling $0.81
per cwt. Lean hog index for 6/26 is at $91.10 up $0.48 with a projected
two-day index of $91.50 up $0.40.
No comments:
Post a Comment