GENERAL COMMENTS: Sharp losses flooded feeder cattle and lean hog trade Monday as follow through liquidation developed in both markets. The stability in live cattle trade could help bring increased support to the complex through the end of the month. Corn futures rallied Monday. July futures is 4 3/4 cents per bushel lower. Dow Jones Index is 34 points lower with NASDAQ down 19 points.
CASH MARKETS: Cash cattle interest remains quiet with bids and asking prices undeveloped Monday. Show lists remain generally lower in most areas, which may help to stimulate packer interest earlier than later this week. Most trade is likely to hold out until midweek or later. National Daily Direct afternoon hog report is $0.34 lower with a weighted average of $73.51 per cwt. Full range of $64 to $75 per cwt on 10,963 head sold.
LIVE CATTLE: Mixed trade held as buyers trickle into summer contracts ($0.30 lower to $0.37 higher). Limited activity was seen through the complex even though sharp losses developed through the rest of the market. Traders focused on short covering opportunities as the potential for end of the month support in beef prices could help bring additional buyers back into the bearish market structure.Beef cut-outs: mixed, $0.26 higher (select, $199.81) and down $0.08 (choice, $219.74) with light demand and moderate offerings, 120 loads (67 loads of choice cuts, 22 loads of select cuts, 17 loads of trimmings, 14 loads of coarse grinds).
TUESDAY'S CASH CATTLE CALL: Steady. Limited direction is expected early in the week following showlist distribution and inventory-taking on Monday. Most trade is expected to hold off until midweek or later, which may keep packers limited in offering bids over the next couple of days.
FEEDER CATTLE: Continued pressure was seen as grain markets move higher ($1.70 to $2.45 lower). Even though support in the grain complex was limited Monday, the underlying pressure already in feeder cattle trade sparked long-term liquidation. Triple-digit losses brought increased technical selling to the complex, even though limited fundamental market changes were seen early in the week. Increased underlying weakness remains in feeder cattle trade, as traders search for renewed support. CME cash feeder index for 6/20 is $131.37, down $1.62.
LEAN HOGS: Sharp additional losses pressure long-term support levels ($1.85 to $3.67 lower). Traders took advantage of expanded trading limits Monday. Losses over the last two sessions broke through March lows in August contracts, allowing for active liquidation to develop over the near future. Pork prices firm following wide price shifts in primal cuts. Pork cutout values added $0.60 per cwt, moving to $77.33 per cwt on 282 loads. CME cash lean index for 6/19 is $79.55, up $0.06. DTN Projected lean index for 6/20 is $79.14, down $0.41.
TUESDAY'S CASH HOG CALL: Steady to $2 lower. Strong underlying pressure is expected to continue to develop in cash hog trade. This may spark underlying weakness through the market, although active processing schedules are likely to continue through the end of the month. Tuesday slaughter numbers are expected at 477,000 head.
 |
| #completeherdhealth |
No comments:
Post a Comment