The cash cattle trade is quiet this morning
following Thursday's bullish romp. While clean-up action is always
possible, we suspect that the lion's share of business is done for the
week. Cattle still left on showlists are probably priced around $138 in
the South and $217-218 in the North. Opening cash hog bids around the
circuit range from steady to $1 higher (mostly steady). Corn futures are
generally 3 cents higher in the early rounds, supported by late week
short covering. At least temporarily ignoring disappoint job growth in
May, the stock market is higher this morning with the Dow up 10 points
and the Nasdaq positive by 16.
LIVE CATTLE:
Spot June is nearly 200 points higher in early
trading as board bulls understandably give chase to this week's
explosive cash market. Deferred issues are moderately lower, a
consequence of bull spreading and some commercial hedging. October and
December are now trading at new contract highs. Open interest on
Thursday increased by 5,226 (431,423). Spot June grew by 1,143 (36,030)
and August jumped 1,566 (202,602). DTN projected slaughter for today is
114,000 head. Look for a Saturday slaughter around 70,000 head.
FEEDER CATTLE:
Feeder futures are mixed at this time with
nearbys gaining on deferreds. Note that spot August is now trading
nearly $10 above the cash index. Historically, that's quite a premium
and a sure vote of confidence regarding ample feed supplies going
forward. Open interest on Thursday increased by 343 (55,044). CME cash
feeder index for 05/31: 147.11, up 1.58.
LEAN HOGS:
Lean hog contracts are narrowly mixed near the
end of the first hour of trading. Volume is light as the late week
spotlight has clearly shifted to the cattle complex. Open interest on
Thursday increased by 1,483 (246,336). Spot June liquidated by 2,375
(20,843) and July lost 933 (65,950). Cash lean index 05/30: 76.53, up
.08. DTN projected slaughter for today is 435,000 head. The Saturday
kill should total close to 222,000.
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