Frim follow-through pressure is seen in cattle futures with triple-digit losses sweeping through the complex. This may add even more uncertainty to the complex over the near future. Hog markets are holding firm gains with nearby gains focusing on increased buyer activity. Corn prices are steady to lower in light trade. March corn futures are 3 cents lower Monday. Stock markets are mixed in light trade. The Dow Jones is 14 points lower while Nasdaq is up 15 points.
LIVE CATTLE:
Strong losses have quickly moved through live cattle trade despite the generally stable market conditions through early Monday. The focus on sharp losses seen Friday which has now put live cattle futures in expanded trade possibilities has been unable to spark buyer interest as prices are holding $1 to $2 per cwt losses at midday. It is likely that the light trade activity seen during most of the session will limit additional wide shifting pressure, but the overall lack of interest could weaken the overall tone. Cash cattle is subdued as show list distribution and inventory taking is the priority Monday morning. This is allowing for increased market activity through the complex. Active trade is likely to be delayed until later in the week with bids and asking prices not expected until Tuesday or Wednesday. Boxed Beef cut-outs at midday are higher, $1.14 higher (select) and up $0.01 per cwt (choice) with light movement of 53 total loads reported (36 loads of choice cuts, 10 loads of select cuts, 4 loads of trimmings, 3 loads of ground beef).
FEEDER CATTLE:
Market weakness is developing late morning in feeder cattle futures as deferred contracts are breaking out of the narrow price pattern seen through most of the morning. This has brought triple-digit losses to most feeder cattle contracts, although nearby futures are still able to limit market pressure at this point. The sharp losses seen in live cattle trade as renewed liquidation is starting to be seen are creating overall uncertainty through the entire complex.
LEAN HOGS:
Activity across the lean hog futures complex remained sluggish through the morning Monday with prices holding at midday generally in the same range as seen early in the session. The strong support in nearby contracts as markets opened has helped to hold February futures $1.30 per cwt higher with prices near $73 per cwt in spot month contracts. This overall lack of movement in the market across the entire complex is helping to solidify market activity in the complex. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $1.03 at $64.82 per cwt with the range from $57.00 to $67.00 on 5,485 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.82 at $65.82 per cwt with the range from $57.00 to $67.00 on 2,431 head reported sold. The National Pork Plant Report posted 155 loads selling with carcass values adding $0.06 per cwt. Lean hog index for 1/04 is at $64.22 up $0.59 with a projected two-day index of $65.65, up $1.43.
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