Active buying quickly moved into livestock trade
as traders quickly offset pressure late last week. This is creating
additional optimism in all livestock trade, leading to triple-digit
gains. Corn futures are mixed in moderate trade. July corn futures are
1/4 cent lower. Stock markets are higher in light trade. Dow Jones is
133 points higher with NASDAQ up 113 points.
LIVE CATTLE:
Active buyer support has returned to the complex
Monday morning with traders quickly and aggressively backing away from
late-week losses. Following the uncertainty with tariff levels on
Mexican products, the market is relieved that a deal has been reached in
order for trade to continue unrestricted. This could add additional
long-term support to live cattle trade, but traders are closely focusing
on the ability to develop sustained support in beef values. Cash cattle
interest remains quiet with limited overall direction developing
Monday. Following the light trade last week, packers remain
short-bought, but the higher futures prices are likely to keep feeders
from settling too early during the week. Asking prices and bids are
undeveloped at this point, and may be quiet until midweek. Boxed Beef
cut-outs at midday are mixed, $1.55 higher (select) and down $0.70 per
cwt (choice) with light movement of 47 total loads reported (17 loads of
choice cuts, 9 loads of select cuts, 11 loads of trimmings, 10 loads of
ground beef).
FEEDER CATTLE:
Active buying is quickly moving into cattle
trade Monday morning with feeder cattle futures holding gains of $2 to
$2.50 per cwt higher through most of the morning. The renewed confidence
is helping to instill stronger support across the entire market with
traders looking for firmness to develop through the rest of the complex.
This may add increased overall support in the next couple of days.
Trader remains within a wide trading range, that strong triple-digit
moves in either direction are unlikely to cause any technical direction
shift over the near future.
LEAN HOGS:
Prices have surged higher late Monday morning as
traders try to quickly back away from pressure seen at the end of last
week. The combination of continued uncertainty in China as well as
proposed tariffs against Mexico lead to widespread market pressure
through the last week. Now that agreements have been worked out with
Mexico, there is optimism that renewed export demand will be seen in the
coming weeks. Lean hog futures have access to expanded trading limits
Monday, but so far gains have been contained to $2 to $2.80 per cwt in
nearby futures. Cash prices are lower on the National Direct morning
cash hog report. The weighted average price is down $0.80 at $75.09 per
cwt with the range from $68.00 to $76.50 on 3,973 head reported sold.
Cash prices are unreported on the Iowa/Minnesota Direct morning cash hog
report. Pork values firmed on steady to strong primal cuts. Pork
cutouts added $1.49 per cwt at $84.57 per cwt with 104 loads traded.
Lean hog index for 6/6 is $80.30, down 0.26, with a projected two-day
index at $79.95, down 0.35.
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