Cattle futures have surged higher in active
trade with front month October levels breaking out of the sideways trend
seen through the entire summer. This has sparked buying activity in all
cattle markets ahead of the weekend. Corn markets are mixed in light
trade. September corn futures are 1/2 cent higher. Stock markets are
lower in light trade. The Dow Jones is 45 points lower while Nasdaq is
down 23 points.
LIVE CATTLE:
Sharp gains have held in live cattle futures
with nearby contracts breaking through short-term resistance levels.
This is helping to spark some additional buyer support through the
complex. October live cattle futures have quickly moved above the $112
per cwt that has contained the October contracts for most of the summer
with prices now trading at $113.60 per cwt. The potential to spark
additional commercial support through the upcoming weeks is helping to
bring about strong triple-digit price support. Cash cattle appear to be
going down to the wire once again with bids developing, but no sales
seen at midday Bids are ranging at $106 to $108 per cwt live while
dressed bids are $168 to $170 per cwt. Asking prices are still at $111
to $112 live and $175 and higher. Boxed Beef cut-outs at midday are
mixed, $0.03 higher (select) and down $0.16 per cwt (choice) with light
movement of 56 total loads reported (32 loads of choice cuts, 11 loads
of select cuts, 5 loads of trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have posted additional
support through the complex. The aggressive rally in nearby live cattle
markets have added to the market support. October feeder cattle futures
are leading the complex with a $3-per-cwt rally. With cattle markets now
breaking out of the sideways trading range, there is expected to be
some additional support through the complex.
LEAN HOGS:
Firm market support is moving into the lean hog
complex with nearby contracts trading steady to $1.35 per cwt higher.
Overall trade remains sluggish through the entire commodity complex, but
the aggressive move higher in cattle trade is sparking some nearby lean
hog interest. Deferred futures remain under light pressure, but this is
not limiting the nearby buying activity. Cash prices are lower on the
National Direct morning cash hog report. The weighted average price is
$0.28 lower at $48.98 per cwt with the range from $44.00 to $55.00 on
3,872 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 161 loads selling on the morning
report. Pork carcass values added $2.28 per cwt at $73.33 per cwt. Lean
hog index for 9/11 is at $48.49 up 0.94 with a projected two-day index
of $50.08, up 1.59.
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