GENERAL COMMENTS:
Cash cattle activity has remained completely
undeveloped Tuesday with bids and asking prices yet to be seen. The
strong support in feeder cattle futures that sparked late day live
cattle futures strength may create some interest. But for now, packers
and feeders seem confident to wait until later in the week before
entering the ring. Active trade is not expected until late in the week,
while packers should become more active in the next day or so. According
to the closing report, the national hog base is $1.33 lower compared
with the prior day settlement ($47.00 to $52.44) weighted average
$51.61. Corn futures are lower in light activity. December futures were 4
3/4 cents lower. Dow Jones Index is 110 points lower with Nasdaq up 7
points.
LIVE CATTLE:
Buyer activity solidified late Tuesday following
the strong market shift higher in feeder cattle. The underlying tone of
the market is firming despite limited gains ($0.27 to $0.82 higher).
Live cattle futures shifted higher and lower through the entire session
Tuesday until aggressive and unchecked buyer support flooded the feeder
cattle during the last hour of trade. This move higher in feeder cattle
futures has quickly brought increased, and more consistent, buyer
activity, which posted gains of 40 to 70 cents in most contract months.
The potential to bring additional solid gains back to the market early
Wednesday is helping to focus on underlying support despite the market
stuck in a wide sideways long-term market trend. Beef cut-outs: lower,
$1.41 lower (select, $198.98) and down $1.47 (choice, $214.08) with
light demand and offerings, 118 loads (70 loads of choice cuts, 27 loads
of select cuts, five loads of trimmings, 16 loads of coarse grinds).
WEDNESDAY'S CASH CATTLE CALL:
Steady. Limited interest is expected to be seen
through early activity Wednesday with bids and asking prices likely to
remain generally absent until later in the day. Active trade is expected
to be seen late in the week, which could limit additional cash interest
through most of the day.
FEEDER CATTLE:
Aggressive gains flooded through feeder cattle
trade late Tuesday with triple-digit market swings racing into nearby
contracts in the last hour of trade ($0.60 to $3.25 higher). Nervousness
seen in cattle trade early in the session was quickly and aggressively
replaced by strong buyer support moving into the complex. These latest
moves had little impact on spot November contracts, although the rest of
the complex posted triple digit gains based on commercial interest
stepping back into the complex. January futures led the market higher
with a $3.25 per barrel rally based on unrestricted buyer support seen
late Tuesday. CME cash feeder index for 11/12 is $149.89 down $0.70.
LEAN HOGS:
Trade activity remains light to moderate through
most lean hog trade with December contracts leading the complex higher
($0.30 lower to $0.75 higher). Late day support moved into the spot
month December contracts following the firm tone seen across the complex
in spring 2019 contract months. The concern of still strong production
levels has continued to erode deferred futures trade with summer 2019
contracts closing steady to 30 cents lower despite the limited trade.
Pork cuts trickled lower in active product movement with primal cuts
shifting widely in both directions through the day. Pork cutout values
fell $0.14 per cwt, moving to $70.69 per cwt. CME cash lean index for
11/09 $61.87 down $0.90. DTN Projected lean index for 11/12 $61.20 down
$0.67.
WEDNESDAY'S CASH HOG CALL:
Steady to $1.50 Lower. Firm follow through
pressure is expected to be seen through cash hog trade early Wednesday
morning. The overall ability for packers to secure needed procurement
levels while limiting spending limits day after day attests to the
amount of market ready hogs already in the pipeline. Slaughter numbers
are expected to be seen at 475,000 head Wednesday morning. Saturday runs
are expected to be seen at 279,000 head.
 |
| #ccc |
No comments:
Post a Comment