Early pressure in cattle trade has added to the selling activity through the morning in both live cattle and feeder cattle futures. Lean hog futures remain firmly higher with triple-digit gains seen in nearby contracts. This mixed price movement is keeping trade volume moderate through the morning. Corn prices are lower in light trade. December corn futures are 2 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 157 points higher while Nasdaq is up 16 points.
LIVE CATTLE:
Moderate to strong pressure is seen in the live cattle complex with spring 2018 contract holding triple-digit losses, although overall volume remains sluggish. This could limit further market activity through the trading session and most of the week. As of now, much of the pressure seen during early trade appears to be based on potential market moves in beef values. Cash cattle markets are quiet with bids and offers hard to pin down at this point. A few cattle have been priced at $121 in the South, but overall feeders continue to keep asking prices pretty concealed. Active trade is expected to be delayed until the last half of the week. Beef cut-outs at midday are mixed, $2.01 higher (select) and down $0.13 per cwt (choice) with activity movement of 91 total loads reported (42 loads of choice cuts, 22 loads of select cuts, 9 loads of trimmings, 18 loads of ground beef).
FEEDER CATTLE:
Light to moderate selling pressure is seen through the feeder cattle complex with traders focusing on additional market pressure in live cattle markets. This could spark even wider losses through the end of the session although trade volume remains sluggish. Prices are 60 to 70 cents lower although the pressure in live cattle markets could bring about additional late day losses through the complex. Trade seems to remain sluggish also, causing some concern that the inability to draw further buying back into the market may create a void in the market and add to the uncertainty through the end of the month.
LEAN HOGS:
Strong buyer support has moved back into the lean hog futures complex Tuesday morning following the ability to focus on the recent gains in futures trade and sustained follow-through support in cash hogs and pork values. Trade remains moderate at best although the underlying support is seen most aggressively in February and April futures which are holding triple digit gains. The expectation that increased buyer activity will continue to develop over the near future. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $1.47 at $58.09 per cwt with the range from $50.00 to $60.00 on 8,994 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $1.86 at $58.93 per cwt with the range from $55.00 to $60.00 on 4,725 head reported sold. The National Pork Plant Report posted 207 loads selling with carcass values gaining $0.58 per cwt. Lean hog index for 11/24 is at $63.08 down $0.58 with a projected two-day index of $62.89, down $0.19.
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