Firm gains continue to hold across livestock markets midmorning Tuesday although prices have backed away from the midmorning highs seen in live cattle and feeder cattle markets. The buyer support remains in cattle trade, given the morning activity. This could spark some late day buyer support through the complex. Corn prices are lower in light trade. September corn futures are 7 cent lower. Stock markets are higher in light trade. The Dow Jones is 4 points higher while Nasdaq is up 2 points.
LIVE CATTLE:
Firm gains are holding in most live cattle futures at midday although front-month August futures are holding a 70 cent loss due to very light trade and traders rolling contracts from the August to October futures. Other nearby contracts have pulled back from the firm triple digit gains that moved into the market midmorning. This has allowed price levels to stabilize near 50 to 80 cent gains as traders look for additional direction from beef values and cash markets later in the day as well as potential market stability through the next couple of weeks. Cash cattle bids have become readily available through late morning with bids seen at $110 live basis while dressed bids are seen at $175 to $177 per cwt. Asking prices remain well above these levels at $115 live basis to $184 to $185 dressed basis. There have been reports of a few cattle sold in Iowa at $181 per cwt, although delivery date reported on these cattle is slated for the first week of September. Even though active bids remain, most trade may be delayed until the second half of the week. Beef cut-outs at midday are mixed, $0.51 lower (select) and up $0.20 per cwt (choice) with light movement of 65 total loads reported (32 loads of choice cuts, 14 loads of select cuts, 10 loads of trimmings, 10 loads of ground beef).
Feeder Cattle:
Strong gains have held through feeder cattle futures although contracts have moved back from the strong triple digit gains seen midmorning. September and October contracts still remain $1 per cwt higher with overall buyer activity extremely firm given the rebound seen across all cattle markets. Narrow trading ranges are seen in all nearby contracts with prices from August to November contracts stuck within a $1 per cwt trading range from $142.80 to $143.80 at midday.
LEAN HOGS:
Firm gains seen early in the session Tuesday have held through the morning with nearby contracts holding $1 to $1.25 per cwt gains. The move from August to October contracts as front month futures has put more emphasis on buying activity in the remaining 2017 contract months. Firm gains continue to be seen in all contracts although volume has slowed at midday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.66 at $76.68 per cwt with the range from $72.00 to $78.75 on 7,187 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.64 at $77.37 per cwt with the range from $72.00 to $78.75 on 4,056 head reported sold. The National Pork Plant Report reported 214 loads selling with prices falling $0.02 per cwt. Lean hog index for 8/11 is at $84.78 down $0.47 with a projected two-day index of $84.38, down $0.40.
No comments:
Post a Comment