Price pressure has developed in all livestock
markets with traders looking for increased market direction next week.
The release of the cattle on feed report is causing some late-week
position taking as traders don't expect a major shift in the report, but
seem to be trying to prepare for anything. Hog markets continue to
erode as contracts have set contract lows once again with little support
expected to be seen. Corn prices are higher in light trade Friday. July
corn futures are 3 cents higher. Stock markets are higher in light
trade. The Dow Jones is 25 points higher while Nasdaq is up 7 points.
LIVE CATTLE:
Narrow losses have moved into the live cattle
complex after prices have bounced higher and lower through the lightly
traded morning session. Traders are looking for additional direction in
both cash cattle trade at the end of the week, and the afternoon release
of the cattle on feed report. This may add some volatility to the
market early next week, but the underlying firm tone seen over the last
couple weeks is still expected to hold. Cash cattle bids have been
floated at the same price levels as seen earlier in the week. The lack
of movement so far midday Friday is expected to push trade off until
after the cattle on feed report at 2 pm central time. Bids remain at
$108 live and $173 dressed. Asking prices are not budging either,
leaving a wide gap between the two levels with asking prices at $114 and
higher live and $180 and up dressed. Boxed Beef cut-outs at midday are
lower, $0.17 lower (select) and down $0.57 per cwt (choice) with light
movement of 58 total loads reported (26 loads of choice cuts, 4 loads of
select cuts, 9 loads of trimmings, 18 loads of ground beef).
FEEDER CATTLE:
Moderate losses have continued to develop
through the feeder cattle futures. This has added increased weakness to
the market with August futures leading the market lower with an 85 cent
per cwt loss. The recent market support that has helped to sustain
additional buyer support through the week, is being countered to the
uncertainty on the upcoming cattle on feed report Friday afternoon.
Trade is expected to remain extremely limited through the rest of the
session.
LEAN HOGS:
Sharp losses have continued to add market
pressure to the August complex, which is weakening all markets.
Triple-digit losses are seen across the entire complex with prices
falling $1.20 to $1.60 per cwt at midday. The inability to sustain any
support that tried to redevelop Thursday is causing many traders to view
the market even more bearish than previously expected. This could add
increased pressure through next week as prices have already set contract
lows once again. Cash prices are lower on the National Direct morning
cash hog report. The weighted average price is down $0.88 at $68.37 per
cwt with the range from $64.00 to $70.00 on 5,231 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
173 loads selling with carcass values falling $1.83 per cwt. Lean hog
index for 7/17 is at $79.15 down 0.54 with a projected two-day index of
$78.62, down 0.53.
No comments:
Post a Comment