GENERAL COMMENTS:
Early week movement in the cash cattle complex remains undeveloped. There is growing uncertainty through the cash market that trade will be active before the last half of the week as bids and asking prices are not expected to be fully developed until midweek or later. According to the closing report, the national hog base is $0.05 lower compared with the Prior Day settlement ($58.50 to $64.00) weighted average $63.05. Corn futures are higher in light activity. December futures were 9 1/2 cent higher. Dow Jones Index is 191 points higher with Nasdaq down 9 points.
LIVE CATTLE:
Limited gains developed in live cattle futures early Monday with prices mixed within a narrow range. Late day buyer support pushed prices higher in all contracts at the closing bell ($0.10 to $0.67 higher). Narrow gains have slowly developed across the complex with October futures holding a 22 cent per cwt gain. This move has continued to spark additional underlying support with prices $113.67 per cwt, while December futures have set contract highs, despite the narrow 10 cent gain, as contracts settled at $118.95 per cwt. This may add some additional support to the complex through early October. Beef cut-outs: higher, $1.19 higher (select, $194.63) and up $1.20 (choice, $205.08) with light demand and offerings (33 loads of choice cuts, 22 loads of select cuts, 12 loads of trimmings, 27 loads of coarse grinds).
TUESDAY'S CASH CATTLE CALL:
Steady to $1 higher. Cash market activity will likely remain undeveloped Tuesday with traders focusing on the stability in cash markets last week and firm underlying tone of futures trade. Bids and asking prices are still hard to find, but should become more accessible over the next couple of days.
FEEDER CATTLE:
Firm gains developed Monday as traders entered the month of October ($0.47 to $1.52 higher). Strong triple-digit gains have quickly and aggressively moved into deferred futures trade. This has created consistent and uniform buying support through the complex with January through September contracts closing up $1.37 to $1.52 per cwt as market support through 2019 continues to focus on expected beef demand both domestic and global. There is likely to be some additional underlying support through the complex, which may support feeder cattle and live cattle prices in the coming days and weeks. CME cash feeder index for 9/28 is $157.48 down $0.41.
LEAN HOGS:
Strong triple-digit gains developed in nearby contracts. This helped add increased buyer support to the entire complex through early October ($0.20 to $2.57 higher). October lean hog futures led the lean hog complex higher Monday with gains of $2.57 per cwt. This pushed spot month contracts to $64.75 per cwt. This has moved spot month prices to the highest levels since June. The renewed buyer activity may continue to add underlying support to the entire lean hog complex. Pork cuts continues to firm during early October, with ham primals the only cutout product posing lower prices. Pork cutout values gained $0.97 per cwt, moving to $81.05 per cwt. CME cash lean index for 9/27 $66.45 up $1.11. DTN Projected lean index for 9/28 $67.26 up $0.81.
TUESDAY'S CASH HOG CALL:
50 cents lower to $1 higher. Limited support is expected to be seen early Tuesday morning with increased buyer activity developing through the week. Most bids are expected to be seen steady to 50 cents per cwt higher. Slaughter numbers are expected to be seen at 460,000 head Tuesday morning.
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