Light to moderate losses are seen in most
livestock trade Thursday. Live cattle futures are showing the most
stability with losses seen from 20 to 50 cents per cwt through most of
the morning. Hog futures continue to lead the market lower with traders
focusing on the lack of buyer support willing to move back into the
market following the sharp $5 per cwt market slide over the last week.
Corn prices are higher in light trade Tuesday. July corn futures are 2
cents higher. Stock markets are lower in light trade. The Dow Jones is
163 points lower while Nasdaq is down 40 points.
LIVE CATTLE:
Narrow losses are holding in all cattle futures
with prices seen 22 to 46 cents per cwt lower at midday due to very
limited trade activity and limited direction in the market. Traders
continue to look for an indication in cash market activity, which could
add some increased volume to the market. But this may not move price
levels, or spark any additional trade volume to move through the already
quiet market structure. There is likely to be some increased movement
through the end of the week, but given the recent support in the
complex, prices may not move significantly through the remainder of
June. Cash bids have returned to the market with no significant change
over the last couple of days. Bids are seen at $108 live basis and $172
to $178 dressed. This is not likely to spark active trade at this point
with the stability in futures and willingness of feeders to wait until
the end of the week. Asking prices are holding at $115 live and $183
dressed. Boxed Beef cut-outs at midday are mixed, $0.37 higher (select)
and down $0.89 per cwt (choice) with light movement of 53 total loads
reported (27 loads of choice cuts, 15 loads of select cuts, 3 loads of
trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Light market erosion is seen through feeder
cattle trade through the morning Thursday. Traders are showing increased
market apathy with front month August futures slipping $1 per cwt at
midday. This overall lack of support in the complex has little to do
with wide spread market shifts or changing market direction. The
inability for strong commercial support to move back into the market
over the last couple hours and hesitancy to move prices above the $150
per cwt threshold is creating some moderate selling activity. Trade
volume through the entire complex remains extremely light, which may add
uncertainty to the entire complex over the rest of the Thursday session
as well as the remainder of the week.
LEAN HOGS:
Firm pressure has been seen in most hog futures
with October through April contracts holding losses near $1 per cwt at
midday as the concern of demand erosion through the next six to nine
months has added even more market pressure. Nearby contracts have posted
a $5 per cwt loss through the week with contracts testing May lows and
could continue to show additional market pressure through the rest of
the month. Although August futures has not broken through initial
support of $74.25 per cwt set mid-May, the lack of buyer support and
general weakness in the complex may add even more softness to the
complex. Cash prices are lower on the National Direct morning cash hog
report. The weighted average price is down $0.47 at $82.08 per cwt with
the range from $75.00 to $82.50 on 3,712 head reported sold. Cash prices
are lower on the Iowa/Minnesota Direct morning cash hog report. The
weighted average price is down $0.43 at $82.23 per cwt with the range
from $80.75 to $82.50 on 1,197 head reported sold. The National Pork
Plant Report posted 121 loads selling with carcass values falling $0.18
per cwt. Lean hog index for 6/19 is at $85.14 up 1.09 with a projected
two-day index of $85.79, up 0.65.
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