Activity in the livestock markets have slowed at midday with buyers while moved into the complex early in the session have slowly backpedaled. All livestock markets are now trading mixed to mostly lower with front-month futures seemingly the only contract to be able to hold buyer support. This may add even more weakness to the complex over the near future. Corn prices are higher in light trade. May corn futures are 1/2 cent higher. Stock markets are higher in light trade. The Dow Jones is 362 points higher while Nasdaq is up 100 points.
LIVE CATTLE:
Cattle traders have quickly pulled back from strong triple-digit gains seen early Tuesday morning. This has allowed the entire cattle complex to hold mixed trade activity in a narrow to moderate range. April live cattle futures continue to hold firm gains with a 75 cent per cwt gain. While other nearby and most deferred contracts are holding mixed trade in a narrow range, from 45 cents lower to 12 cents higher. The inability to bring buyer support back into the market, could add even more weakness to the complex. Trade volume is expected to remain sluggish with very little additional information expected to be seen through the complex. Cash cattle activity remains generally sluggish Tuesday morning, although this is par for the course early in the week. A few token bids have been seen in Kansas at $116 per cwt live basis. The few asking prices that can be found are seen at $120 per cwt, but both sides continue to focus on outside market direction Tuesday. Active trade may not be seen until later in the week, although there is expected to be some pressure put on packers to gain access to cattle sooner or later based on the light sales seen last week. Boxed beef cut-outs at midday are mixed, $0.82 lower (select) and up $0.10 per cwt (choice) with moderate movement of 86 total loads reported (32 loads of choice cuts, 36 loads of select cuts, 5 loads of trimmings, 12 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have posted moderate to firm losses with all but April contracts eroding through late morning. April futures have battled back from firm losses and are trading 10 cents higher at midday. But the rest of the complex is holding losses of 40 cents to $1.42 per cwt. The concern that traders will continue to show light to moderate market erosion and be unable to draw new trade interest through the next several days is weakening the tone of the entire complex.
LEAN HOGS:
Early buyer support has quickly eroded during the Tuesday session. This is allowing for markets to remain unsettled in very limited activity through the morning as strong early gains have been replaced by moderate losses in all but April and May contracts. Even though front-month futures are able to hold buyer attention for now, the weaker tone that is moving into the market may add some concerns about further market pressure. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down 0.85 at $44.86 per cwt with the range from $43.00 to $45.00 on 2,724 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 214 loads selling with carcass values adding $1.19 per cwt. Lean hog index for 4/6 is at $54.02 down 0.73 with a projected two-day index of $53.50, down 0.52.
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