Livestock futures are under light to moderate pressure with traders focusing on the ability to square positions following recent market support. The light trade volume seen across the complex has allowed for markets to hold these recent losses without any significant concern that the firm market tone will be damaged in the near future. Corn prices are lower in light trade. March corn futures are 3/4 cent lower Monday. Stock markets are lower in light trade. The Dow Jones is 245 points lower while Nasdaq is down 29 points.
LIVE CATTLE:
Moderate losses have steadily developed across the live cattle futures complex with traders focusing on the overall lack of follow through support that moved into the market during the last couple of days. There is likely to be some additional market shifts in the final hours of trade, but the weaker market tone may continue to be seen late Monday. The pressure in outside markets is also having an impact on buyer interest in all cattle markets. Cash cattle interest is undeveloped Monday morning. This is not unexpected at all as most of the focus will be placed on inventory taking and show list distribution. It is uncertain at this point if there will be any early week activity similar to last week's trade, or if the focus will move back to a more typical end of the week trade schedule. Boxed Beef cut-outs at midday are higher, $1.05 higher (select) and up $0.75 per cwt (choice) with light movement of 47 total loads reported (24 loads of choice cuts, 13 loads of select cuts, 5 loads of trimmings, 6 loads of ground beef).
FEEDER CATTLE:
Early support in nearby cattle trade has quickly eroded through the morning as traders seem to be uncertain as to just how much follow through buyer support may develop over the next several of days or weeks. Price levels have moved lower in a tight trading range with most contracts holding losses of 45 to 70 cents per cwt at midday. The lack of variation across the market could increase trade activity back to the table over the near future.
LEAN HOGS:
Despite front-month February contracts still able to hold light to moderate gains through the morning, the rest of the complex has shifted lower with increased market softness coming from the weakness in the cattle trade as well as outside market pressure. April and June futures are holding triple digit losses from $1.25 to $1.40 per cwt lower as traders continue to focus on the limited trade volume in the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.01 at $72.67 per cwt with the range from $63.00 to $72.79 on 2,846 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.68 at $71.34 per cwt with the range from $63.00 to $72.50 on 226 head reported sold. The National Pork Plant Report posted 126 loads selling with carcass values adding $0.20 per cwt. Lean hog index for 2/1 is at $74.10, up 0.23 with a projected two-day index of $74.48, up 0.38.
No comments:
Post a Comment