GENERAL COMMENTS: Livestock futures moved mostly higher Tuesday with lean hogs up by triple digits. Initial gains appeared to be due to traders covering short positions, and then increasing buyer support throughout the session helped to solidify those early gains. Cash cattle activity remained sluggish Tuesday afternoon with a few token bids of $107 live basis and $174 to $175 dressed. Although asking prices are not readily available, a few cattle have been priced in the South at $110 to $111 live basis. It is expected to be Wednesday or later before cash trade develops. Even when it does develop, activity could trickle in over a couple of days at the end of the week. Given that next week is the first week of July, and a holiday week to boot, it is uncertain just how many cattle will be purchased before the end of June. The National Daily Direct afternoon hog report was $1.33 lower ($62-$76.50, weighted average $72.18) on 9,751 head sold. Corn futures ended mixed Tuesday following early gains with July up 3/4 cent per bushel. The Dow Jones Index was 179 points lower with the NASDAQ down 120 points.
LIVE CATTLE: Live cattle futures settled $0.10 to $0.82 higher. A lack of pressure throughout the livestock trade helped to rekindle buyer support in nearby futures with June through October futures each posting 82-cent gains at closing bell. Live cattle futures spent most of the session trading mixed in a narrow range, but stronger support moved into the complex in the last hour of trade, pushing nearby futures higher. Though futures remain at the bottom end of trading ranges, the potential to establish new support levels during the last week in June could spark renewed commercial interest during the next few weeks. Beef cut-outs: lower, down $0.86 (select, $198.95) to down $0.10 (choice, $219.64) with moderate to good demand and moderate offerings, 151 loads (77 loads of choice cuts, 46 loads of select cuts, 8 loads of trimmings, 20 loads of coarse grinds).
WEDNESDAY'S CASH CATTLE CALL: Steady. Limited bids and asking prices are available going into midweek, which may keep both sides from aggressively focusing on sales until later in the week. Packer interest is expected to improve as the day continues, but significant focus will be placed on the overall direction of futures trade.
FEEDER CATTLE: Feeder cattle futures closed $0.07 to $0.47 lower. Futures traded mixed in a narrow-to-moderate range throughout Tuesday's session. Firming support in live cattle trade and late-day pressure in corn markets was not enough to boost feeder cattle futures. Nearby contracts remain under firm pressure with 45- to 47-cent losses. Limited volume late in the day kept most traders on the sidelines as they watch for potential support in cattle trade through the end of the month. Nearby feeder cattle contracts have set new contract lows, with traders still unsuccessfully searching for market support. CME cash feeder index for 6/24 is $131.46, up $0.05.
LEAN HOGS: Lean hog futures closed $0.50 to $1.95 higher. Active buying quickly moved into lean hog futures Tuesday morning, bringing an abrupt halt to the August futures' nearly $9-per-cwt slide over three trading sessions. But given the technical pressure already in the complex, gains of nearly $2 per cwt do very little to replace buying interest. At this point, the bounce higher is viewed more as a correction than a reversal. But continued support at midweek could lead to additional buying at the end of the month. Although there continues to be optimism for trade talks with China later in the week, expectations of any significant developments in the near term are relatively low at this point. Pork prices tumbled as sharp losses in bellies offset gains in rib cuts. Pork cutout values fell $1.75 per cwt, moving to $75.58 per cwt on 357 loads. CME cash lean index for 6/21 is $78.65, down $0.49. DTN Projected lean index for 6/24 is $78.31, down $0.34.
WEDNESDAY'S CASH HOG CALL: Steady to $2 lower. Continued weakness is expected through lean hog trade with bids expected to be mostly $1 per cwt lower early Wednesday morning. Despite the support in futures trade Tuesday, packers remain concerned about fundamental pressure through the end of the month. Wednesday slaughter numbers are expected at 477,000 head. Saturday runs are expected near 57,000 head.
 |
| #completeherdhealth |
No comments:
Post a Comment