Sharp end-of-week buyer support has flooded into
livestock markets. This price rally has helped to spark some increased
commercial trade activity, although there remains uncertainty if
increased volume will be develop and confirm market gains. Corn markets
are higher in light trade activity. September corn futures are 3 cents
higher. Stock markets are mixed in light trade. The Dow Jones is 84
points higher while Nasdaq is down 7 points.
LIVE CATTLE:
Triple-digit gains have quickly and aggressively
moved into nearby live cattle trade. This is helping to bring some
underlying support back into the complex with traders looking for the
ability to spark some additional support through the entire cattle
market over the near future. October futures are leading the complex
higher with a $1.80 per cwt rally. This is moving all nearby contracts
above the $110-per-cwt trading range, and helping to bring longer-term
support back to the complex. Cash cattle activity remains sluggish with
bids increasing through the morning, but this is still unable to spark
any significant interest from feedlot managers. Bids are seen from $108
to $110 live and $173 to $176 dressed. Asking prices remain unchanged
$114 and higher live basis and $182 to $183 dressed. Boxed Beef cut-outs
at midday are higher, $0.86 higher (select) and up $0.75 per cwt
(choice) with light movement of 52 total loads reported (20 loads of
choice cuts, 9 loads of select cuts, 16 loads of trimmings, 7 loads of
ground beef).
FEEDER CATTLE:
Firm underlying buyer support has replaced early
pressure in feeder cattle trae. This is moving nearby contracts $1 per
cwt higher based on the aggressive buyer support in the live cattle
complex. Although the tone of the market remains unsettled given the
wide market shifts seen over the last couple of weeks, the ability to
end the week on a positive note could quickly change the overall
direction during the month of August.
LEAN HOGS:
Front-month August contracts remain lightly
traded with most of the interest and activity moving into October
through February futures trade. This is keeping spot-month August
contracts under light pressure with markets holding a 20 cent loss at
midday. The rest of the complex has surged higher with triple-digit
gains moving into the market as traders try to adjust to the recent
losses seen through the complex. October futures are leading the market
higher with gains near $2 per cwt through most of the morning. This may
not have long-term influence in the market, but is quickly pulling
prices off of contract lows. If follow-through support develops early
next week, the complex has a chance at a moderate technical shift higher
through the next couple of weeks. Cash prices are unreported due to
confidentiality on the National Direct morning cash hog report. Cash
prices are unreported due to confidentiality on the Iowa/Minnesota
Direct morning cash hog report. The weighted average price is down $1.33
at $56.30 per cwt with the range from $55.00 to $57.50 on 586 head
reported sold. The National Pork Plant Report posted 139 loads selling
with carcass values falling $0.41 per cwt. Lean hog index for 8/1 is at
$68.91 down 1.07 with a projected two-day index of $67.57, down 1.34.
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