Firm pressure is seen in most livestock trade
Friday with cattle markets are leading the market lower. This may add
even more weakness to the complex with traders looking for increased
market direction early next week. Corn prices are lower in light trade.
March corn futures are 1 cent lower Friday. Stock markets are mixed in
light trade. The Dow Jones is 70 points lower while Nasdaq is up 43
points.
LIVE CATTLE:
Light to moderate pressure is trickling into the
Friday session with little new information available for traders to
grasp hold of before the weekend. There is likely to be some additional
market weakness as traders seem to have a hard time finding a sense of
stability during early March. Even though prices have fallen
significantly over the last couple of weeks, the market still remains
well within the sideways trading pattern due to the extremely wide
trading range seen in the previous two months. This could allow prices
to move higher and lower in wide ranges without any technical signals
developing. Cash cattle interest is light Friday morning with just a few
scattered bids developing. Most if not all of the needed and desired
trade has already wrapped up over the last two days. Dressed bids are
seen at $205 per cwt midday, but not much is expected to develop in any
markets before the end of the week. Asking prices on cattle still on
show lists are at $128 in the South and $206 and higher across the
North. Boxed beef cut-outs at midday are mixed, $1.02 lower (select) and
up $0.46 per cwt (choice) with light movement of 46 total loads
reported (22 loads of choice cuts, 16 loads of select cuts, no loads of
trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Moderate pressure is seen through the complex
with traders holding triple-digit losses in nearby contracts. March
through May feeder cattle futures are posting the most aggressive market
weakness, which is focusing on continued market pressure seen through
the week as well as lack of fundamental support coming from the cattle
market. There is very little technical direction seen in the feeder
cattle market with prices still hovering within the wide price range set
over the last two months. Even with the renewed market weakness, prices
are still over $6 per cwt above support levels set during the month of
December.
LEAN HOGS:
Sluggish trade is seen through the entire
morning Friday with prices mixed to mostly lower. The lack of market
movement through the day is limiting trade activity in most areas, and
keeping most traders unwilling to break out of previous market ranges.
Front month April contracts have clung onto a narrow 22 cent per cwt
gain, while most other contracts are holding losses of 20 to 40 cents
per cwt. Light trade volume is seen through the entire complex. This is
expected to keep prices range bound through the end of the week, and
bring some additional uncertainty to trade next week. Cash prices are
lower on the National Direct morning cash hog report. The weighted
average price is down $0.14 at $62.20 per cwt with the range from $56.00
to $62.69 on 2,806 head reported sold. Cash prices are lower on the
Iowa/Minnesota Direct morning cash hog report. The weighted average
price is down $1.80 at $60.51 per cwt with the range from $56.00 to
$61.00 on 631 head reported sold. The National Pork Plant Report posted
193 loads selling with carcass values gaining $0.97 per cwt. Lean hog
index for 2/28 is at $68.36, down 0.21 with a projected two-day index of
$68.09, down 0.27.
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