Firm buyer activity has held through lean hog and feeder cattle trade at midday Tuesday. This overall support in the complex has brought about increased overall market support to most livestock trade, although volume remains sluggish Tuesday. Live cattle markets have not been swept into the buying support with prices mixed in an extremely narrow range. Corn prices are lower in light trade. December corn futures are 4 cents lower. Stock markets are higher in light trade. The Dow Jones is 46 points higher while Nasdaq is up 5 points.
LIVE CATTLE:
Live cattle futures are holding in a narrow trading range at midday with prices 20 cents lower to 5 cents higher. The narrow market range seen during the entire morning as well as overall lack of direction seen Monday is causing some caution to the market as traders are starting to focus on the change in direction from the live cattle market and the feeder cattle complex. This may spark some additional volatility through the end of the week, but for now, markets seem to be well rooted with narrow market moves. Cash cattle activity remains quiet with bids undeveloped yet this week. There are a few scattered asking prices starting to be seen in the South at $108 to $109, but these are not expected to get much attention at this point. Asking prices are likely to start out from $171 to $173 in the North. It would not be surprising if markets remain quiet until the last half of the week, with active trade being pushed into sometime Thursday or Friday. Beef cut-outs at midday are higher, $1.13 higher (select) and up $0.21 per cwt (choice) with light movement of 81 total loads reported (44 loads of choice cuts, 13 loads of select cuts, 14 loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Firm commercial buyer interest continues to hold on in feeder cattle trade despite slight pressure in the live cattle complex. This overall support is focused on nearby markets which have backed away slightly from early gains and are trading at 20 to 35 cents per cwt higher. The overall strong support seen in feeder cattle trade is taking the market by surprise as overall market fundamentals would not suggest an aggressive market rally at this point.
LEAN HOGS:
Strong midday gains have continued to be seen through the lean hog complex with traders focusing on strong triple digit gains developing in December contracts. The overall support through the market has helped to hold October contracts above the $60 per cwt price level, which is limiting any pressure from redeveloping. The most aggressive market firmness is seen in December through May contracts. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.89 at $51.24 per cwt with the range from $49.00 to $53.00 on 13,468 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.74 at $51.43 per cwt with the range from $51.00 to $52.50 on 9,485 head reported sold. The National Pork Plant Report reported 263 loads selling with prices falling $1.97 per cwt. Lean hog index for 9/15 is at $62.82 down $1.25 with a projected two-day index of $61.88, down 0.94.
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