GENERAL
COMMENTS: From Friday to Friday, livestock futures scored the following
changes: June LC, down $1.55; Aug. LC, up $0.22; Aug FC, up $4.13; Sep.
FC, up $3.28; June LH, down $3.07; July LH, down $2.57. Cash cattle
trade wrapped up the week with lower prices. Cash in the South ranged
from $112 to $114, down $2.00 to $3.00 from last week. Dressed sales
down $2.00 to $3.00, ranging from $183.00 to $184.00. According to the
Dairy Direct Hogs afternoon report, the weighted average price was $0.05
higher with a base price range of $67-$77. Corn futures fell in light
of better weather and uneasiness of progress with Mexico before Monday.
July corn lost 4 3/4 cents. The Dow gained 263 points to end at 25,983
and the NASDAQ was up 126 points at 7,742.
LIVE CATTLE: Live cattle futures succumbed to
selling pressure after holding minimal losses for much of the day. With
the exception of June, later contracts suffered triple-digit losses. The
minor uptrend that had developed this week seems to have been negated
with the close today. Beef cut-outs were mixed: choice, up $0.06 per cwt
at $222.31 and select, down $0.24 per cwt at $206.92. There were 30
loads of choice cuts, 17 loads of select cuts, 13 loads of trimmings,
and 20 loads of ground beef.
MONDAY'S CASH CATTLE CALL: Steady to $1 lower.
The fact that buyers were able to procure cattle this week at lower
prices will bring buyers back in, hoping for more next week. Futures
losses Friday will also result in lower bids.
FEEDER CATTLE: Futures did not spend much time
in the black as selling pressure dominated much of the day. Weakness of
cash cattle this week and the inability to extend futures gains Friday
moved traders to the sidelines before the weekend. The Commitments of
Traders report shows fund traders net short this market nearly 3-1.
LEAN HOGS: Futures tried to limit losses
earlier, but selling took over with July and August contracts closing
limit down. This will raise the daily trading limit to $4.50 on Monday.
It likely will not be needed, as the action Friday was a run for the
door in case something unexpected takes place with the U.S.-Mexico trade
negotiations. New lows for this move were established in an oversold
market. Pork cut-out values gained $1.12 per cwt, moving to $84.37 per
cwt. CME cash lean hog index for 6/5 was $80.56 down $0.11. The
projected index for 6/6 is $80.30, down $0.26.
MONDAY'S CASH HOG CALL: Steady to $1.00 lower.
The pressure on futures at the close of the week will keep packers
unwilling to buy aggressively. Weekend political events may change that.
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