Friday, June 1, 2018

Friday Midday Livestock Market Summary - Light Pressure Developing Across Cattle Trade

GENERAL COMMENTS: 
Limited trade is seen through the complex with nearby lean hog futures holding a moderate gain. There is expected to be some additional movement through early next week, although trade is likely to hold the current wide trading range over the near future. Corn prices are lower in light trade. July corn futures are 3 cents lower. Stock markets are mixed in light trade. The Dow Jones is 225 points higher while Nasdaq is up 106 points.

LIVE CATTLE:
Live cattle futures have posted moderate losses with late 2018 contracts posting 70-to-80-cent losses. There is limited trade seen through the entire complex with prices focused on additional softness at the end of the week despite the desire to bring increased activity through the market during early June. Cash cattle activity remains generally quiet with just a few sales developing in Kansas through the morning at $110 per cwt. These prices are generally steady with last week. Although light live trade developed in the North Thursday, only scattered bids have redeveloped. Asking prices are seen near $112 live and $183 dressed. Bids that have developed through the morning are at $110 live and $175 dressed. Boxed beef cut-outs at midday are mixed, $0.62 higher (select) and down $0.18 per cwt (choice) with light movement of 73 total loads reported (33 loads of choice cuts, 10 loads of select cuts, 17 loads of trimmings, 14 loads of ground beef).

FEEDER CATTLE:
Light pressure has developed across the complex with losses of 5 cents per cwt to 55 cents per cwt. There is increased overall pressure seen through the entire complex. There is expected to be some additional late-day softness developing across the complex. Front month August futures are holding a 44 cent per cwt loss. There is growing uncertainty with increased softness in the live cattle complex.

LEAN HOGS:
Nearby lean hog futures trade is mixed with strong nearby contracts holding across the complex with June contracts holding a $1.02 rally. July through October contracts are holding gains from 12 to 72 cents per cwt with firm fundamental support helping to draw buyers back into the market now that June has arrived. Light volume is expected to be seen through the rest of the session. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.45 at $69.24 per cwt with the range from $61.00 to $70.50 on 3,227 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.20 at $69.68 per cwt with the range from $61.00 to $70.50 on 620 head reported sold. The National Pork Plant Report posted 201 loads selling with carcass values falling $1.57 per cwt. Lean hog index for 5/30 is at $69.63 up 0.13 with a projected two-day index of $70.01, up 0.38.

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