Firm gains have held through live cattle and
lean hog trade at midday with increased buyer support moving into the
market at the end of the month. Increased overall support may continue
to develop, although trade volume is expected to remain light. Corn
markets are higher in light trade. December corn futures are 5 cents
higher. Stock markets are lower in light trade. The Dow Jones is 53
points lower while Nasdaq is down 7 points.
LIVE CATTLE:
Firm gains have held in live cattle trade
despite the continued pullback in the feeder cattle complex. This move
is helping to bring the focus of most traders back to the ability to
firm beef values at the end of the week. Nearby contracts are holding 40
to 60 cent gains as traders continue to focus on underlying demand
support through the next couple of months which is not focused on in the
feeder cattle complex due to the longer term scope of the market. Cash
cattle trade has yet to develop at midday Friday, although bids have
increased significantly through the morning. Bids are seen at $112 live
basis, and $180 to $183 dressed with most bids seen at the high end of
this range. There is still an enormous gap between bids and asking
prices with current asking prices easing some, but still at $119 to $120
per cwt live and $187 and higher dressed. Over the next several hours,
it is likely that these prices will merge with at least some business
expected to need to get accomplished by the end of the day. Boxed Beef
cut-outs at midday are higher, $0.11 higher (select) and up $0.18 per
cwt (choice) with light movement of 68 total loads reported (33 loads of
choice cuts, 9 loads of select cuts, 7 loads of trimmings, 19 loads of
ground beef).
FEEDER CATTLE:
Firm market pressure continues to be seen
through feeder cattle trade. The spark higher in corn markets through
the morning is one of the biggest factors in renewed market pressure
developing in all feeder cattle futures. Even though trade volume
remains sluggish, the two-day market pressure in nearby contracts has
created additional longer-term concern that markets may be unable to
hold recent market support and could focus on additional losses during
early December.
LEAN HOGS:
Light activity is seen through lean hog trade
with traders reversing early market pressure seen through the first half
of the morning with narrow gains that are seen at midday. Trade volume
remains sluggish at this point with traders holding on to 10 to 20 cent
per cwt gains in most contracts and seemingly more focused on holding
the current pattern through the end of the month than any other factor.
Given the support seen Thursday, and hopes that positive moves develop
over the weekend surrounding the G20 Summit, the focus on long term
demand growth has once again kept traders optimistic. Cash prices are
higher on the National Direct morning cash hog report. The weighted
average price is $0.91 higher at $50.44 per cwt with the range from
$48.00 to $50.74 on 2,510 head reported sold. Cash prices are lower on
the Iowa/Minnesota Direct morning cash hog report. The weighted average
price is $0.58 lower at $49.26 per cwt with the range from $48.00 to
$50.00 on 515 head reported sold. Pork carcass values fell $0.28 per cwt
at $68.16 per cwt on 183 loads. Lean hog index for 11/28 is $56.56,
down 0.28, with a projected two-day index is $56.42, down 0.14.
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