Livestock futures have bounced around quite a bit through the morning Tuesday. This overall lack of consistency in the market creates more questions than answers concerning market direction and overall trader's intentions. Nearby pressure is offset by longer term deferred gains, but sluggish trade volume is keeping markets in an unsettled range. Corn prices are mixed in light trade. March corn futures are 1 cent higher Tuesday. Stock markets are mixed in light trade. The Dow Jones is 101 points lower while Nasdaq is up 21 points.
LIVE CATTLE:
Prices have shifted higher and lower in a moderate range through the entire morning. The inability for market consistency to be seen is coming from the moderate to wide shifts that have developed in feeder cattle as well as lack of active trade volume seen in the live cattle complex. This may add even more momentum to the market late in the week, but the lack of consistent price movements day after day is causing some concerns across the complex. Cash cattle markets remain generally quiet with a few starter bids seen in Nebraska at $202 live basis. Asking prices are still hard to pin down at this time, leaving the indication that most feel trade will be delayed until the last half of the week. Bids are undeveloped in the South, although a few cattle in Texas are reported to be priced at $128 to $129 per cwt. Boxed beef cut-outs at midday are higher, $0.54 higher (select) and up $0.09 per cwt (choice) with light movement of 63 total loads reported (27 loads of choice cuts, 15 loads of select cuts, 13 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Moderate to strong pressure has developed across feeder cattle futures with the overall lack of support causing some uncertainty through all cattle markets. Feeder cattle futures are stuck in a moderate to wide trading range as prices are 17 to 72 cents per cwt lower at midday. The market has bounced between moderate gains and losses through the morning as traders seem to have little evidence in order to spark some additional longer term market shifts. This could add even more uncertainty to the complex which may add even more late-day weakness to the complex.
LEAN HOGS:
Generally, support is holding in most lean hog futures trade Tuesday morning, although prices have slowly pulled back from early gains. April contracts are hanging onto narrow 10 cent gains with active price pressure seen in May and June contracts. The extremely limited trade volume in all nearby contracts is causing some additional uncertainty through the complex. There may be some additional market shifts through the end of the session given the growing market shifts in nearby contracts. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.33 at $62.68 per cwt with the range from $56.00 to $63.50 on 6,913 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 236 loads selling with carcass values falling $1.07 per cwt. Lean hog index for 3/2 is at $67.69, down 0.40 with a projected two-day index of $67.52, down 0.17.
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