Livestock futures trade has posted limited
market direction Friday morning as traders try to adjust positions
following the aggressive losses seen Thursday. Mixed trade is seen
through the morning, although all contracts are showing limited market
activity with most prices hovering in a narrow range. Corn markets are
higher in light trade. March corn futures are 3 cents higher. Stock
markets are mixed in light trade. Dow Jones is 102 points higher with
Nasdaq down 9 points.
LIVE CATTLE:
Narrow gains are holding at midday Friday
despite limited direction in cash trade and mixed beef values. When
faced with the aggressive market correction Thursday that pulled prices
off recent highs, light but steady end-of-week support is redeveloping.
The tone of the live cattle complex remains firm, allowing for increased
overall support through the entire complex during early February, even
though it is expected to be challenging to sustain price levels at or
near contract highs through the next couple of months. Cash cattle trade
is still sluggish midday Friday. A few cattle have been sold in Iowa at
$198 per cwt through the morning, but this is not yet enough to
establish a market trend. Bids are becoming more active at $121 live and
$196 to $199 dressed. The higher end of the dressed bids are from
regional packers. Asking prices are holding at $125 and higher live and
$200 to $203 dressed. It could easily be late afternoon or early evening
until the majority of trade takes place. Boxed Beef cut-outs at midday
are mixed, $0.30 higher (select) and down $1.32 per cwt (choice) with
light movement of 35 total loads reported (23 loads of choice cuts, 3
loads of select cuts, no loads of trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Narrow losses have held through the entire
morning in feeder cattle trade. The most significant pressure is seen in
August futures as traders continue to focus on the potential of
additional cattle placements through the summer months and questions
about sustained support through the entire beef complex. Nearby futures
are showing limited losses of 10 to 35 cents per cwt as traders move
their attention away from live cattle and beef markets at the end of the
week, and on grain trade and the early morning buyer support in the
corn complex.
LEAN HOGS:
Limited activity is seen in lean hog futures
with early support in February and April contracts eroding through late
morning. This is causing some additional market uncertainty and
questions if a strong market selloff may develop during afternoon trade,
similar to Thursday's activity. Firm gains are holding in deferred
futures, based on very limited interest and the desire for most traders
to cover short positions at the end of the week. Cash prices are higher
on the National Direct morning cash hog report. The weighted average
price is up $0.10 at $50.80 per cwt, with the range from $50.25 to
$51.08 on 3,213 head reported sold. Cash prices are unreported due to
confidentiality on the Iowa/Minnesota Direct morning cash hog report.
Pork carcass values are lower on the morning report with prices falling
$1.35 per cwt at $66.70 per cwt with 173 loads traded. Lean hog index
for 1/30 is $57.40, down $0.27, with a projected two-day index is
$57.18, down $0.22.
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