Strong buyer support has flooded into the cattle complex. This may add even more support if prices in either the live cattle or feeder cattle move to the daily trading limits before the end of the session. Corn prices are higher in light trade Thursday. July corn futures are 4 cents higher. Stock markets are lower in light trade. The Dow Jones is 213 points lower while Nasdaq is down 24 points.
LIVE CATTLE:
The sharp losses seen early Friday morning were short lived and quickly gave way to aggressive triple-digit gains in nearby and deferred futures. Nearby live cattle futures are holding gains above $2 per cwt, with August contracts nearing the $3 per cwt trading limit at midday. A move to this limit would not only significantly change the overall market direction, but would also allow for expanded trade when markets enter the market Monday. Cash cattle trade seems set on pushing sales into Friday afternoon with bids not moving very far as more market activity is seen in all areas. Bids are seen at $110 live and $175 to $178 dressed. The sharp market rally in futures trade could have some late-day support as feedlot managers continue to focus on aggressive market expectations. Boxed Beef cut-outs at midday are mixed, $0.71 higher (select) and down $0.02 per cwt (choice) with light movement of 74 total loads reported (40 loads of choice cuts, 11 loads of select cuts, 12 loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Aggressive buyer support has flooded into the cattle complex through the morning Friday. The development of sharp losses early in the session seemed to create an incredible vacuum that sucked buyer activity into the market once selling interest slowed. August feeder cattle futures continue to lead the market higher with a $3.52 per cwt rally. Although overall volume is light, if gains hold through the end of the session, renewed support is expected to develop early next week.
LEAN HOGS:
Moderate to strong buyer support has moved into the lean hog futures despite lackluster direction in cash markets through the morning. The strong support seen across the cattle complex has become a driving force in the entire livestock market. This move has trickled into lean hog futures with nearby gains 40 cents to $1 per cwt higher. The overall lack of market consistency is driven by very limited trade seen through the morning. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.68 at $82.35 per cwt with the range from $76.00 to $84.00 on 3,211 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.03 at $83.40 per cwt with the range from $76.00 to $84.00 on 1,375 head reported sold. The National Pork Plant Report posted 142 loads selling with carcass values gaining $1.22 per cwt. Lean hog index for 6/12 is at $78.71 up 1.53 with a projected two-day index of $80.09, up 1.38.
No comments:
Post a Comment