Aggressive triple-digit gains have flooded into
cattle markets following the recent widespread liquidation over the last
couple of weeks. Nearby contracts are holding gains above $2 per cwt in
both live cattle and feeder cattle trade. This is supporting
follow-through buying. Corn prices are higher in light trade. March corn
futures are 3 cents per bushel higher. Stock markets are higher in
light trade. The Dow Jones is 138 points higher while Nasdaq is up 2
points.
LIVE CATTLE:
Strong buyer support has quickly and
aggressively moved into live cattle trade Tuesday morning. This has
pushed nearby contracts $1.50 to $2.50 per cwt higher at midday with
underlying support building through all contracts. This is creating
additional buyer support in February through June contracts as buyers
who have been on the sidelines during the recent market pressure are
very willing and able to step back into the complex. Follow-through
support is expected to be seen through the end of the session, although
prices may not move significantly higher before closing bell. Cash
cattle activity remains undeveloped at this point with bids and asking
prices hard to find through most of cattle country. Active trade is
expected to be delayed until late in the week. The surge in futures
prices may help to improve early week bids, but not likely to spark
trade volume at this point. Beef cut-outs at midday are higher, $0.32
higher (select) and up $0.29 per cwt (choice) with light movement of 69
total loads reported (36 loads of choice cuts, 13 loads of select cuts, 7
loads of trimmings, 13 loads of ground beef).
FEEDER CATTLE:
Sharp triple-digit gains have quickly developed
across all cattle trade as the aggressive pressure over the last couple
of weeks has sparked some underlying buyer interest through nearby and
deferred contracts. The focus continues to be placed on the recent moves
in live cattle trade and is sparking delayed support in feeder cattle
futures. Nearby contracts are holding gains of $2 to $2.50 per cwt as
traders try to move markets higher and establish a sense of support
through the week.
LEAN HOGS:
Lean hog futures have remained sluggish early
Tuesday morning with front-month December futures able to hold onto
moderate gains of 30 cents per cwt. The rest of the complex is focusing
on follow-through market pressure as prices are holding consistent
losses of 30 to 40 cents per cwt. The general lack of support in the
market remains the focus through most of the trading session and will
likely keep traders on a bearish focus through midweek. Cash prices are
lower on the National Direct morning cash hog report. The weighted
average price is down $0.21 at $58.66 per cwt with the range from $52 to
$59.20 on 5,866 head reported sold. Cash prices are lower on the
Iowa/Minnesota Direct morning cash hog report. The weighted average
price fell $0.62 at $58.04 per cwt with the range from $57.50 to $58.50
on 1,896 head reported sold. The National Pork Plant Report posted 244
loads selling with carcass values falling $0.12 per cwt. Lean hog index
for 12/08 is at $65.17 down $0.31 with a projected two-day index of
$64.97, down $0.20.
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