GENERAL COMMENTS: Early support slowly but steadily eroded in livestock markets Tuesday due to technical buyer support being met with position-taking in limited trade. Trade volume is expected to remain light through the end of the week. Trade on Wednesday will be shortened due to an early close ahead of Thursday's holiday. Cash cattle interest remained sluggish with limited bids redeveloping this week at $107 to $111 live basis and $178 dressed. Southern bids were seen at $107 per cwt, with limited interest in Iowa seen at $111 per cwt. These prices are well below asking prices of $110 and higher live basis in the South and $182 dressed in the North. The desire still remains to secure most cash trade by the end of the day Wednesday, but the lack of movement at this point is likely to cause some trade to return Friday. The National Daily Direct afternoon hog report was unavailable at the time these comments were posted. Corn futures ended higher Monday in limited trade with September up 3 1/2 cents per bushel. The Dow Jones Index was 69 points higher with the NASDAQ up 17 points.
LIVE CATTLE: Traders generally remained absent from the live cattle market most of the session, leading to a mixed close of $0.32 lower to $0.62 higher. Trade may continue to be light through the end of the week. With markets closing early Wednesday and remaining closed Thursday, trader interest will likely be lackluster. Traders are looking for light-to-moderate support in beef values through early July, but it is uncertain whether this will spark support through all futures contracts. The August contract remained unchanged Tuesday, with narrow losses in nearby contracts offsetting the limited gains in deferred contracts. Beef cut-outs: higher, up $0.35 (select, $195.99) to up $0.75 (choice, $220.47) with light demand and moderate offerings, 142 loads (61 loads of choice cuts, 39 loads of select cuts, 7 loads of trimmings, 35 loads of coarse grinds).
WEDNESDAY'S CASH CATTLE CALL: Steady. Despite both sides' desire to trade cattle before the holiday break, the current wide gap between asking prices and bids is expected to limit movement early Wednesday.
FEEDER CATTLE: Feeder cattle futures settled steady to $1.57 higher. Buyers moved into the feeder cattle market Tuesday despite the bounce higher in corn prices. All but the April 2020 contract held triple-digit gains. Potential noncommercial support may drive additional interest into the cattle trade the rest of July. CME cash feeder index for 7/1 was unavailable at the time these comments were posted.
LEAN HOGS: Lean hogs closed $1.45 lower to $1.15 higher. July and August were the only contracts to close higher. This eroded support through the rest of the complex. Summer 2020 contracts posted the most aggressive losses as traders began to lose optimism of a trade deal with China, even though the two sides have agreed to a temporary truce in the trade dispute. Concerns remain that there are still major roadblocks to reaching a deal. Pork values shifted lower with widely mixed moves in primal cuts limiting overall market stability. Pork cutout values fell $0.07 per cwt, moving to $73.21 per cwt on 402 loads. CME cash lean index for 6/28 is $74.97, down $1.08. DTN Projected lean index for 7/1 was unavailable at the time these comments were posted.
WEDNESDAY'S CASH HOG CALL: Steady to $2 lower. Little change in cash market direction is expected to be seen over the next couple of days. Packers are lining up procurement levels through the end of the week, although bids are expected to still remain steady to lower, with most bids steady to weak. Wednesday slaughter schedules are expected to hit 475,000 head. Friday slaughter numbers are expected at 441,000 head after the holiday. Saturday runs are expected near 190,000 head.
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