Strong pressure has continued to develop in hog
trade with triple-digit losses quickly developing late Friday. This may
add increased long-term pressure ahead of the long holiday weekend. Corn
futures are higher in moderate trade. July corn futures are 11 cents
higher. Stock markets are higher in light trade. Dow Jones is 109 points
higher with NASDAQ up 33 points.
LIVE CATTLE:
Live cattle futures are steady to moderately
lower with increased pressure developing in all but front-month June
futures. Growing concern of expected growth in cattle on feed numbers is
causing traders to take protection in front of the report and long
holiday weekend. With markets closed Monday, traders will have to wait
until Tuesday before reacting to the report, which may add increased
volatility through the entire complex. Cash cattle trade remained quiet
with no additional bids seen Friday. Cash trade is expected to be done
for the week in all areas, with prices steady to $2 per cwt lower than
last week. Boxed Beef cut-outs at midday are higher, $1.95 higher
(select) and up $0.71 per cwt (choice) with light movement of 64 total
loads reported (28 loads of choice cuts, 13 loads of select cuts, 12
loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have moved firmly lower in
late day trade with prices 22 to 90 cents per cwt lower as traders
prepare for the upcoming cattle on feed report. Expectations that sharp
increases in cattle placements will be seen in the afternoon cattle on
feed report has eroded any previous support and added a weaker market
trend.
LEAN HOGS:
Active pressure has quickly moved into lean hog
futures trade through the last couple hours of trade Friday. The concern
that markets will remain closed over the next three days is sparking
increased uncertainty through the entire lean hog complex surrounding
the relationship between the U.S. and China. Even though volume in the
complex remains extremely light late Friday, the focus on market
protection is pushing prices $2 to $2.50 per cwt lower at the end of the
week. Cash prices are lower on the National Direct morning cash hog
report. The weighted average price is down $2.52 at $77.96 per cwt with
the range from $72.00 to $78.53 on 5,095 head reported sold. Cash prices
unreported due to confidentiality on the Iowa/Minnesota Direct morning
cash hog report. Pork values continued higher following strong gains in
rib primal cuts. Pork cutouts added $0.90 per cwt at $83.52 per cwt with
167 loads traded. Lean hog index for 5/22 is $84.36, down 0.03, with a
projected two-day index at $84.02, down 0.34.
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