Moderate to strong pressure is seen through the livestock market as traders transition to March. Sharp triple-digit in feeder cattle markets are the main focus across the complex with traders looking for any sign of market stability in the near future. Lean hog futures showing very little direction although the bearish tone continues to limit any market support. Corn prices are higher in light trade. March corn futures are 3 cents higher Thursday. Stock markets are lower in light trade. The Dow Jones is 68 points lower while Nasdaq is down 14 points.
LIVE CATTLE:
Narrow losses are holding in live cattle futures Thursday morning. The significant follow-through pressure in feeder cattle markets is causing traders to take a defensive tone, but limited activity is also keeping most traders from quickly backing away from the market. Prices remain steady to 50 cents per cwt lower at midday, although the potential for additional market weakness is building given the bearish tone of all cattle trade Thursday. Cash cattle activity remains quiet with just a few token bids seen in the North on a life basis at $128 per cwt. The focus on trade Wednesday, before the end of the month seemed to focus more on basis activity more than anything else. Even though the overall amount of cattle sold was light to moderate in most areas, cattle trade in the South may be done for the week. There is expected to be more cattle needed to be acquired in the North, but this may not be until late Friday. Asking prices are at $128 in the South and $206 and higher across the North. Boxed Beef cut-outs at midday are higher, $0.99 higher (select) and up $1.20 per cwt (choice) with light movement of 63 total loads reported (40 loads of choice cuts, 12 loads of select cuts, no loads of trimmings, 10 loads of ground beef).
FEEDER CATTLE:
Strong pressure has quickly redeveloped across feeder cattle futures trade Thursday morning. Although traders have pulled back from sharp triple-digit losses seen early in the day, widespread market weakness continues to be evident in feeder cattle trade. March futures remain generally stable due to light activity, although the rest of the complex is 70 cents to $1.10 per cwt lower as traders continue to liquidate previous positions. There is likely to be some increased market activity developing late in the day, although the tone of the market will likely remain bearish.
LEAN HOGS:
Early-market weakness which left prices mixed in a narrow range through most of the morning have given way to light buyer support stepping back into the market. Trade continues to show general market weakness, but short covering has become the main agenda though late morning trade. This is pushing prices 5 to 40 cents higher and likely could draw some additional buyer activity back to the table through the end of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.23 at $61.88 per cwt with the range from $56.00 to $63.00 on 5,056 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 129 loads selling with carcass values gaining $0.57 per cwt. Lean hog index for 2/27 is at $68.57, down 0.26 with a projected two-day index of $68.35, down 0.22.
No comments:
Post a Comment