Firm pressure has developed in live cattle and lean hog futures midday Thursday even though light trade volume has been seen through the complex. Very little long-term market direction is expected to be seen over the near future which could allow prices to shift in a moderate range over the next few trading sessions. Corn prices are higher in light trade. September corn futures are 3 cents higher. Stock markets are higher in light trade. The Dow Jones is 51 points higher while Nasdaq is up 4 points.
LIVE CATTLE:
Light pressure has developed in live cattle futures with nearby futures holding losses of 12 to 65 cents per cwt at midday although trade volume has remained extremely light through the entire session. The inability to hold early buyer support as more trade activity moved into the complex quickly gave evidence that additional losses may continue to develop through the entire market. But as seen midweek, a strong late day market bounce is still not out of the question as the light trade volume is giving the opportunity to allow increased volatility into all markets. Cash cattle markets are generally quiet Thursday morning with bids redeveloping at $117 live basis and $186 to $188 dressed. Sales have not been reported at this point, and may be hard to find before the end of the week. It is likely that the market has been set at this point. Beef cut-outs at midday are lower, $0.64 lower (select) and down $0.26 per cwt (choice) with light movement of 87 total loads reported (47 loads of choice cuts, 29 loads of select cuts, 3 loads of trimmings, 7 loads of ground beef).
Feeder Cattle:
Narrowly mixed trade is seen across the feeder cattle market with traders taking a very subdued approach Thursday morning. The overall lack of direction seen through the entire trading session continues to draw front-month August futures slightly lower with August futures holding a 35 cent loss. Other nearby contracts have posted narrow gains with spillover buyer interest trickling into the complex through the last half of the week.
LEAN HOGS:
The lack of support seen through the entire complex has continued to develop Thursday morning with nearby contracts expanding early losses as October futures are now trading 62 cents per cwt lower in light trade. Market activity continues to remain sluggish across all contracts, with prices grouped in a narrow range, but firmly lower as most contracts 30 to 60 cents per cwt lower at midday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.80 at $80.95 per cwt with the range from $80.28 to $82.50 on 3,810 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 180 loads selling with prices falling $1.19 per cwt. Lean hog index for 7/24 is at $90.44 down $0.69 with a projected two-day index of $89.84, down $0.60.
No comments:
Post a Comment