Limit losses have developed in cattle trade Monday morning in reaction to the bearish cattle on feed report seen Friday. This pushed live cattle futures $3 per cwt lower in several contracts, while most feeder cattle markets are posting $4.50 per cwt losses. Corn prices are lower in light trade. September corn futures are 4 cents lower. Stock markets are mixed in light trade. The Dow Jones is 50 points lower while Nasdaq is up 10 points.
LIVE CATTLE:
Limit losses are seen in October and December contracts have allowed markets to create additional market pressure through live cattle futures. There continues to be a bearish undertone across the entire cattle market as traders focus on the sharp losses in feeder cattle trade as well as general pressure in the live cattle complex. This could significantly weaken fundamentals even though technical factors have not been impacted at this point. Cash cattle remain quiet with bids and asking prices undefined at this point in the week. Show lists appear to be overall larger across the country with Texas the only area with smaller offerings early in the week. It is likely going to be midweek before active bids develop given the defensiveness of futures trade. Beef cut-outs at midday are higher, $2.77 higher (select) and up $0.53 per cwt (choice) with light movement of 41 total loads reported (23 loads of choice cuts, 10 loads of select cuts, no loads of trimmings, 8 loads of ground beef).
Feeder Cattle:
Limit losses have quickly developed across feeder cattle futures as traders have focused on the bearish news in the July 1 cattle on feed report. The increased placement numbers seen during June has added to the concerns through the entire complex. This has weakened the entire cattle market and could set the tone for the entire week.
LEAN HOGS:
Triple-digit losses have moved through nearby lean hog futures trade with October through April lean hog futures posting losses of $1 to $1.25 per cwt as spillover pressure is seen from the weakness in the cattle futures. August futures remain under pressure with prices hovering above $80 per cwt with 95-cent-per-cwt losses. The continued pressure in cash trade continues to add to the lack of support in the lean hog complex. This may add even more softness to the market through the near future as traders try to bring some underlying stability to the market in the next couple of weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.19 at $82.13 per cwt with the range from $77.00 to $83.25 on 4,944 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.71 at $82.86 per cwt with the range from $77.00 to $83.00 on 2,015 head reported sold. The National Pork Plant Report reported 101 loads selling with prices falling $0.67 per cwt. Lean hog index for 7/20 is at $91.67 down $0.33 with a projected two-day index of $91.13, down $0.54.
No comments:
Post a Comment