Livestock futures are holding moderate to strong gains in most contracts as cattle trade has held aggressive triple-digit support through the entire complex. This may bring additional trade volume to the market with increased potential of bullish buyer activity seen through the week. Hog markets are mixed, but the deferred contract support is slowly eroding early-market pressure. Corn prices are higher in light trade. March corn futures are 2 cents higher Tuesday. Stock markets are higher in light trade. The Dow Jones is 42 points higher while Nasdaq is up 80 points.
LIVE CATTLE:
Buyer interest has flooded into the market, pushing prices higher at the beginning of the week. The underlying support coming from higher boxed beef values and higher cash trade last week has sparked increased activity in both commercial and noncommercial traders over the first couple hours of trade. The tone remains strong which is likely to bring additional support back to the market over the near future. This may help to solidify additional longer-term buyer support during the first quarter of 2018. Cash cattle markets are undeveloped Tuesday morning with packers and feeders slowly focusing on the early January direction following firm gains late last week. With prices gaining $3 to $5 per cwt higher in late Friday trade from the previous week, the focus on follow through support is circulating market support. But bids or asking prices are not likely to be seen until midweek or later. Boxed beef cut-outs at midday are higher, $2.57 higher (select) and up $1.32 per cwt (choice) with light movement of 55 total loads reported (20 loads of choice cuts, 17 loads of select cuts, 10 loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Strong triple-digit gains are holding in feeder cattle trade Tuesday morning, although prices have backed away from session highs. This is allowing buyers to step back into the market after the first of the year with gains of $2 to $3 per cwt. The longer the buyer support develops through the early part of the week, the stronger underlying support is likely to develop in all cattle trade.
LEAN HOGS:
Lean hog futures continue to draw firm buyer support in deferred contracts at midday. This is helping to bring additional support to the complex as traders focus on increased trade volume over the morning. Nearby futures are still under light to moderate pressure although the support that is gaining momentum in the rest of the complex is helping to spark some increased trade through the complex. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.38 at $59.12 per cwt with the range from $54.00 to $60.00 on 4,663 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.53 at $59.72 per cwt with the range from $54.00 to $60.00 on 1,920 head reported sold. The National Pork Plant Report posted 114 loads selling with carcass values gaining $0.74 per cwt. Lean hog index for 12/27 is at $61.58 down $0.01 with a projected two-day index of $61.72, up $0.14.
No comments:
Post a Comment