GENERAL COMMENTS:
Cash cattle bids became active Thursday, leading to some limited trade at $175 per cwt dressed basis and $110 live in the North. This is steady to $1 per cwt higher than last week, and may set the tone for firmer prices. Bids are from $108 to $111.50 per cwt live basis with the higher end of the scale in the North. Dressed bids are around $175 per cwt. Southern trade will not likely start until Friday, and it is uncertain how much additional Northern trade will trickle in through late afternoon and evening Thursday. Asking prices on live cattle in the South remain at $113 to $114. According to the closing report, the national hog base is $0.11 lower compared with the prior day settlement ($58.50-$65.00) weighted average $63.30. Corn futures are higher in light activity. December futures were 2 3/4 cents higher. Dow Jones Index is 252 points lower with Nasdaq down 161 points.
LIVE CATTLE:
Live cattle futures were mixed Thursday ($0.30 lower to $0.42 higher). Moderate gains slowly but steadily moved into front-month October live cattle futures, breaking away from the market weakness seen over the last couple of days. Even though other nearby contracts posted narrow losses, the presence of buyer activity in the market changed the overall tone through the session. Beef cut-outs: lower, $0.32 lower (select, $191.98) and down $0.56 (choice, $203.86) with moderate demand and offerings 119 loads (60 loads of choice cuts, 21 loads of select cuts, 13 load of trimmings, 25 loads of coarse grinds).
FRIDAY'S CASH CATTLE CALL:
Steady to $1 higher. A few cash deals trickled in Thursday. Trade Friday is expected to focus on end-of-week market needs. Packer interest is likely to increase significantly through the day with feeders expected to hold firm to previously stated asking prices.
FEEDER CATTLE:
Follow-through pressure developed in feeder cattle futures with aggressive nearby softness widening the focus to firming grain trade ($0.60 to $1.02 lower). November futures led the complex lower with a $1.02 per cwt loss, as all nearby contracts closed near $1 per cwt lower in limited activity. The firm buyer support in corn futures added some market uneasiness to the entire complex. There is growing concern that additional pressure may develop late in the week. Nearby contracts still have a ways to go before short-term resistance levels are hit, but swift moves seen over the last couple of sessions are putting these target prices much closer than some would like. CME cash feeder index for 10/3 is $157.81 down $0.03.
LEAN HOGS:
Pressure quickly developed once again in lean hog futures as December led the market lower ($1.85 lower to $0.02 higher). Even though front-month October pushed prices higher each of the last two trading sessions, the weaker focus across the complex remains on sharp triple-digit losses in other nearby contracts. December futures posted a $1.82 per cwt loss, closing at $55.32 per cwt, while February and April futures held triple-digit losses through the end of the session. Narrow losses were seen in deferred contracts, as traders continue to focus on the short versus long-term market direction through the week. Pork cuts continue to erode with triple-digit losses seen in butts and picnics. Pork cutout values fell $0.46 per cwt, moving to $79.91 per cwt. CME cash lean index for 10/2 $68.84 up $0.91. DTN Projected lean index for 10/3 $69.15 up $0.31.
FRIDAY'S CASH HOG CALL:
Steady. Early activity Friday is expected to continue the trend seen through the week with bids steady to $1 per cwt lower. It is likely that most bids will remain steady once all the dust settles. Slaughter numbers are expected to be seen at 460,000 head Friday morning. Saturday runs are expected at 182,000 head.
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