Cattle futures have surged higher with $2 per
cwt gains developing in live and feeder cattle trade following the
holiday break. Limited trade interest is expected to continue the entire
session, leaving the potential for wide market swings in all markets.
Hog trade is holding strong pressure as follow through weakness
develops. Corn markets are lower in light trade. Stock markets are
lower. Dow Jones is 125 points lower with NASDAQ down 41 points.
LIVE CATTLE:
Open: $1 to $2 higher. Sharp gains have moved
through nearby live cattle trade in opening minutes of activity Friday.
Nearby contracts are trading at or near $2 per cwt higher as continued
technical support is steadily moving into the complex. The recent market
support is being viewed with caution as limited volume is expected
through the end of the week as many traders remain on the sidelines. But
the ability to push October prices above $108 per cwt through the end
of the week would break through summer resistance levels set in late
May. This has the potential to create additional technical support
through the month of July, moving the projected target range near $110
per cwt. Cash cattle activity remains quiet Friday morning with bids
unavailable at this point. It appears that most needed trade wrapped up
before the end of the day Wednesday. There may be a few cleanup sales
developing through the day Friday, but in general market activity is
expected to remain very quiet. Cash cattle traded developed at $108 to
$110 live in the South, most sales at $109, steady with last week.
Dressed trade in the North ranged from $178 to $182 per cwt. Most sales
were at $180 per cwt, generally $1 per cwt higher than last week. Cattle
left on showlists are priced at $112 and higher live and $183 dressed,
although these asking prices will likely be carried over until next
week. Open interest Wednesday added 1,055 positions (250,543). Spot
month August contracts lost 2,777 positions (131,061) and October
contracts added 3,107 positions (106,662). DTN projected slaughter for
Friday is 120,000 head.
FEEDER CATTLE:
Open: $1 to $2 higher. Aggressive buying is
moving into feeder cattle trade as traders try to cover short positions
seen Wednesday as well as increased focus on the recent rebound in live
cattle trade. Corn trade started lower Friday morning with traders
slowly but steadily backing away from the midweek rally that sparked
aggressive pressure in feeder cattle trade. With only limited trader
activity expected most of the Friday session, markets may struggle to
find enough volume to establish a market trend before next week, but the
limited activity may still cause wide price shifts before the weekend.
Cash index for 7/2 is $133.94, unchanged. Open interest Wednesday added
40 positions (49,619).
LEAN HOGS:
Open: $1 lower. Firm underlying pressure is
redeveloping Friday morning as traders continue to back away from early
week support. Limited trader activity during the last half of the week
is clearly limiting additional market stability and allowing the few
traders in the market to take protection. Strong underlying pressure in
pork values midweek added to the overall fundamental concerns while
technically traders appear to be focusing on a narrow to moderate
sideways trend developing during early July. Cash hog trade is called
steady to $1 lower, with most bids steady to weak. Open interest added
1,416 positions (298,922). July fell 1,159 positions (18,055) and August
lost 105 positions (82,257). Cash lean index for 7/2 is $73.22, down
0.79. DTN projected slaughter for Friday is 450,000 head. Saturday runs
are expected at 190,000 head.
 |
| #completeherdhealth |
No comments:
Post a Comment