Firm pressure has been seen in most livestock markets once again Thursday with feeder cattle and lean hog futures posting strong market weakness through the morning. Mixed trade in live cattle futures is helping to build a sense of stability through the complex. Corn markets are higher in light trade. December corn futures are 3 cents higher. Stock markets are lower in light trade. The Dow Jones is 248 points lower while Nasdaq is down 153 points.
LIVE CATTLE:
Despite the strong pullback through the rest of livestock trade, live cattle futures are mixed in a narrow trading range. Nearby futures have battled higher following early morning pressure with prices 2 to 35 cents higher in remaining 2018 contracts. The rest of the complex is unable to spark additional price pressure despite strong losses in feeder cattle trade. Cash cattle bids have become more evident through the morning with bids seen at $108 to $109 live and $174 to $175 dressed. Near midday it was confirmed that light trade has developed in Nebraska with prices at $175 dressed. This is generally $1 per cwt higher than last week. It is uncertain or not if this will set a trend and spark additional trade through the rest of the day, or if traders will back away from the market waiting for Friday trade. It is very possible that activity in the South could remain quiet until sometime Friday. Asking prices remain firm at $113 to $114 live basis, and $180 dressed. Boxed Beef cut-outs at midday are lower, $0.56 lower (select) and down $0.60 per cwt (choice) with moderate movement of 75 total loads reported (39 loads of choice cuts, 11 loads of select cuts, 10 loads of trimmings, 15 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures remain under pressure, although losses have backed away from early session lows. This softness in the complex may add some additional underlying pressure to the entire livestock trade, although trade volume through the end of the session is expected to remain limited with very little movement likely before markets close. October futures are 52 cents lower at midday, as the focus on maintaining the previous market support given what is expected to be a moderate market correction during early October.
LEAN HOGS:
Lean hog futures remain mostly lower with strong triple-digit losses redeveloping in December through April contracts. Spot October 2018 and October 2019 contracts are holding narrow gains at midday, but unlikely to spark any aggressive market shift through the entire complex. The price premium in front-month October contracts continues to widen given the discount developing in late 2018 contract months. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.43 lower at $62.98 per cwt with the range from $60.00 to $64.50 on 6,876 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $0.91 lower at $62.64 per cwt with the range from $60.00 to $64.50 on 3,060 head reported sold. The National Pork Plant Report posted 172 loads selling on the morning report. Pork carcass values fell $0.41 per cwt at $79.96 per cwt. Lean hog index for 10/2 is at $68.84 up 0.91 with a projected two-day index of 69.15, up 0.31.
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