Sharp losses swept through August live cattle
contracts as traders try to exit the expiring contract month. This has
pushed prices $3 per cwt lower midday. Very little long term market
direction is seen in all markets with traders adjusting positions ahead
of the long weekend. Corn markets are higher in light trade activity.
September corn futures are 9 cents higher. Stock markets are mixed in
light trade. The Dow Jones is 79 points lower while Nasdaq is up 11
points.
LIVE CATTLE:
The thinly traded, and expiring front-month
August live cattle futures have moved $3 per cwt late Friday morning as
traders continue to try to exit the contract and move into other nearby
contracts. The rest of the live cattle trade is hovering in narrow to
moderate losses of 20 to 47 cents per cwt. Even though the sharp loss in
August trade will not significantly impact overall trade interest due
to the light open interest and sluggish activity, a close below $107 per
cwt on the monthly chart will continue to add volatility to the market.
Cash cattle trade still remains undeveloped as both sides move into
Friday afternoon with the desire to get business done as quickly as
possible before the holiday weekend. Bids have firmed slightly through
the morning with current bids at $107 live and $168 to $170 dressed in
most areas. It is likely that trade will become more active through the
afternoon, with the expectation that trade will finish quickly once it
starts to develop. Boxed Beef cut-outs at midday are lower, $1.56 lower
(select) and down $1.73 per cwt (choice) with light movement of 53 total
loads reported (13 loads of choice cuts, 18 loads of select cuts, no
loads of trimmings, 22 loads of ground beef).
FEEDER CATTLE:
Light to moderate pressure is seen in feeder
cattle futures as traders continue to focus on the inability to draw
buyers back into the complex late in the week. October feeder cattle
trade remains under pressure, holding $1.15 per cwt as the overall focus
is pushing prices below $150 per cwt. A close at these levels at the
end of August could create some uncertainty through the entire cattle
market despite the expectation that firm demand support is likely to be
seen through the upcoming weeks.
LEAN HOGS:
Sharp gains have quickly developed Friday
morning across the entire lean hog complex. This is adding to some
additional support across the market as triple digit gains are seen in
all nearby contracts. Even though prices have slowly backed away from
session highs, the desire to move into the complex before month end has
helped to push prices above recent market pressure. The lean hog complex
continues to remain in a sideways trading range following the wide
price shift seen during the month of August. This range could contain
prices through the next few months. Cash prices are lower on the
National Direct morning cash hog report. The weighted average price is
$0.29 lower at $36.40 per cwt with the range from $34.00 to $38.00 on
4,140 head reported sold. Cash prices are lower on the Iowa/Minnesota
Direct morning cash hog report. The weighted average price is $0.12
lower at $36.66 per cwt with the range from $33.00 to $37.00 on 1,502
head reported sold. The National Pork Plant Report posted 182 loads
selling on the morning report. Pork carcass values fallen $0.06 per cwt
at $66.69 per cwt. Lean hog index for 8/29 is at $45.85 down 0.60 with a
projected two-day index of $45.63, down 0.22.
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