Aggressive pressure continues to hold across
feeder cattle trade. This may spark additional buyer interest in the
market, late in the session, but buyers seem to be willing to hold out
until next week at this point. Lean hog futures are mixed at midday
after giving back early gains which gave increased promise to the
market. The overall light trade volume in the market is a major draw for
the hog complex. Corn prices are higher in light trade. December corn
futures are 4 cents per bushel higher. Stock markets are mixed in light
trade. The Dow Jones is 87 points lower while Nasdaq is up 2 points.
LIVE CATTLE:
Losses in live cattle futures have remained
sluggish with traders focusing on the sharp triple-digit losses in the
feeder cattle market. This is due mostly to the overall lack of trade
activity at the end of the week. With no significant direction detected
in cash markets late in the week, traders are focusing on outside market
shifts. This could spark additional long-term market direction through
the complex. Cash cattle trade appears to be done for the week with no
active bids developing through the morning. The moderate to active trade
seen earlier in the week $2 to $4 per cwt lower than last week's levels
has met most packer's needs for now. It is still possible that a few
cleanup sales may develop late in the day, but with the downward
pressure in prices, most feeders are expected to hold off until next
week. Beef cut-outs at midday are mixed, $1.04 higher (select) and down
$1.68 per cwt (choice) with moderate movement of 76 total loads reported
(34 loads of choice cuts, 22 loads of select cuts, 9 loads of
trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Sharp losses have quickly flooded into the
market Friday morning with triple-digit pressure developing just after
opening bell. This has sparked additional long term pressure to develop
through the complex. Traders are holding $1.50 to $1.70 per cwt losses
as traders continue to shift lower and liquidate positions at the end of
the week. The overall concern that strong pressure may continue through
the Thanksgiving season is bringing additional sellers to the market.
LEAN HOGS:
Light trade has continued to be seen through the
morning Friday. This is limiting overall market direction following a
pull back from sharp triple digit gains seen early in the trading day.
Nearby contracts continue to hold a narrow gain of 10 to 30 cents per
cwt while deferred futures are trading lower in the same price ranges.
Sluggish market activity is expected to be seen through the end of the
session, although the inability to hold early support is going to be
viewed as generally bearish for the market. Cash prices on the direct
morning reports are unavailable at this time. The National Pork Plant
Report posted 133 loads selling with cutout values falling $0.07 per
cwt. Lean hog index for 11/15 is at $69.97 down $0.40 with a projected
two-day index of $65.42, down $0.55.
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