Weakness has continued to develop through lean hog futures with early $1 to $2 per cwt losses slowly eroding in most contracts through the morning. Cattle futures remain mixed in a narrow to moderate range Monday with limited direction seen in live cattle futures. Corn futures are higher in light trade. July corn futures are 2 cents higher. Stock markets are higher in light trade. Dow Jones is 21 points higher with Nasdaq up 14 points.
LIVE CATTLE:
Narrow trading ranges are seen through the entire complex with prices hovering on either side of unchanged. June futures remain mixed at midday with traders treading water through the end of the month without any major news developing over the next couple of days. Following the strong market pullback over the last week, traders see very little incentive to push prices lower based on firm fundamental demand likely to develop through the next couple of months. Cash cattle activity is quiet with bids and asking prices undeveloped. Show list distribution is the main focus Monday morning. Trade is expected to be pushed off until at least midweek. With the month ending Tuesday, there seems little interest in trading cash cattle yet in April. Boxed Beef cut-outs at midday are unreported.
FEEDER CATTLE:
Initial mixed trade seen in feeder cattle followed the limited direction in live cattle trade. But market pressure has built through late morning with August prices falling an addition $1.35 per cwt at midday. This overall lack of support through the complex may continue to add increased pressure to the already weak complex. With potential supply issues of feeder cattle moving into feedyards through the rest of the summer, additional support may be hard to find. Noncommercial pressure may continue to develop following the pullback of open interest in most cattle markets.
LEAN HOGS:
Firm pressure has continued to move through lean hog trade with initial strong pressure quickly pushing prices $1 to $2 per cwt lower due to limited volume. As more traders entered the market, prices moderated slightly with most contracts 60 cents to $1 per cwt lower at midday. Limited buyer support has pushed late month contracts slightly higher due to the inability to bring more liquidation to the complex. Traders remain focused on potential Chinese demand, and this could spark some additional underlying movements through the entire complex, although market stability needs to be seen before any aggressive buyer interest will step into the complex. 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. Lean hog index for 4/24 is $83.73 up 0.33, with a projected two-day index is $83.46 down 0.27.
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