Strong underlying support is moving into cattle trade with live cattle and feeder cattle trade holding gains at or near $1 per cwt in most contract months. Focus on upcoming demand is rekindling buyer interest in all contract months. Hog futures started sharply lower, but remain mixed in sluggish early month trade. Corn futures are higher in light trade. May corn futures are 4 cents higher. Stock markets are higher in light trade. Dow Jones is 252 points higher with Nasdaq up 74 points.
LIVE CATTLE:
Strong buyer activity has quickly moved into cattle trade with nearby live cattle futures holding gains of 90 cents to $1.30 per cwt Monday morning. Underlying support through the complex is based on expectations that firm demand will continue to develop in wholesale beef values and lower grain markets last week can stimulate additional buying activity through the entire complex. The ability to hold current price levels through the week, sustains short term support levels in nearby contract months. This may continue to allow prices to hover in a sideways pattern over the next several weeks. Cash cattle markets are quiet, which is expected on a Monday. Following light to moderate trade last week, the focus will be on the need for packers to fill orders in order to keep aggressive plant speeds going. Show list distribution and inventory taking is likely to be the limit of interest shown Monday. Boxed Beef cut-outs at midday are higher, $0.86 higher (select) and up $1.24 per cwt (choice) with light movement of 34 total loads reported (22 loads of choice cuts, 5 loads of select cuts, no loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Underlying support has steadily and slowly moved into feeder cattle trade Monday as traders adjust to the firmness in live cattle trade and expectations that additional buyer support will return during early April. Corn prices are moderately higher Monday, but the inability to show aggressive support following last week's losses, point to lower overall feed costs, which is helping to sustain additional buyer activity in feeder cattle. Triple-digit gains are seen in all but January 2020 contracts at midday, as the early-month buyer support may spark longer-term support through the entire complex.
LEAN HOGS:
Strong initial losses developing Monday morning appear to have exhausted most seller interest at this point, as markets have posted mixed trade through the rest of the Monday session. Even though the general tone of the market remains weak with prices mostly lower, the inability to actively liquidate positions on the first trading day of April sparked increased interest. The firmness in pork values is helping to solidify nearby contracts, while deferred trade still remains concerned about long-term trade deals. Cash prices are unreported at this time on the National Direct morning cash hog report. Cash prices are unreported at this time on the Iowa/Minnesota Direct morning cash hog report. Pork values firmed Monday morning despite limited volume returning in early month trade. Pork cutouts gained $0.50 per cwt at $81.86 per cwt with 113 loads traded. Lean hog index for 3/28 is $73.81 up $2.15, with a projected two-day index is unavailable at this time.
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