Strong triple-digit gains have quickly moved
back into cattle futures with live cattle futures moving $2 per cwt
higher while feeder cattle futures holding support over $3 per cwt
during Monday morning activity. This support is helping to bring about
increased buyer interest across the market with traders looking for
additional follow-through activity later in the week. Hog futures remain
weak with triple-digit losses still concerned about fundamental and
technical pressure developing. Corn prices are lower in light trade.
September corn futures are 2 cents lower. Stock markets are mixed in
light trade. The Dow Jones is 21 points lower while Nasdaq is up 10
points.
LIVE CATTLE:
Nearby futures have moved as much as $2 per cwt
higher during morning trade with the support from strong feeder cattle
trade leading the surge higher and drawing aggressive commercial support
back into the market. Although volume remains relatively sluggish at
this point, there is still some uncertainty as to just how much upward
momentum will be able to develop in nearby contracts. October futures
are testing price levels at $109 per cwt, while December contracts have
moved above $110 per cwt easily through morning trade. If follow-through
buying can redevelop through the week and live cattle markets can
string together a two-to-three-consecutive-day trend, this will go a
long way in helping to establish buyer support through early September.
Cash cattle markets remain quiet Monday morning and limited to inventory
taking and show list distribution. Bids and asking prices are still
unavailable at this time, and will likely remain that way until near
midweek. Beef cut-outs at midday are higher, $0.53 higher (select) and
up $0.19 per cwt (choice) with light movement of 65 total loads reported
(34 loads of choice cuts, 13 loads of select cuts, 10 loads of
trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Aggressive triple-digit gains have quickly moved
back into all cattle markets. The feeder cattle trade is leading the
move higher with gains of $2 to $3 per cwt seen in nearby futures. As
September through November futures now trading above $146 per cwt and
showing the ability to gain additional underlying support with
commercial and investment support willing to move back to the table
through the end of the month, this could help to instill longer-term
stability through the entire complex.
LEAN HOGS:
Strong pressure continues to be seen in lean hog
futures trade despite support seen midmorning in pork values and cash
prices in the Midwest. But the overall underlying pressure in technical
and concerns that overall fundamental softness will continue to be seen
through the end of the month is weighing on nearby and futures traders.
This is pushing all nearby contracts with losses holding losses near $1
per cwt across most contracts. Cash prices are higher on the
Iowa/Minnesota Direct morning cash hog report. The weighted average
price gained $0.21 at $67.26 per cwt with the range from $63.00 to
$67.75 on 945 head reported sold. The National Pork Plant Report
reported 113 loads selling with prices gaining $0.42 per cwt. Lean hog
index for 8/24 is at $78.23 down $1.17 with a projected two-day index of
$76.76, down $1.47.
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