GENERAL COMMENTS:
Attempts by traders to rekindle buyer support in lean hog trade at midday Thursday were quickly offset by aggressive losses that took advantage of expanded trading limits. October through February futures closed $3.50 to $4 per cwt lower as traders prepared for more bearish pork market developments. Firm gains held in live cattle trade despite outside market pressure. Cash cattle trade developed in the North Thursday with live trade seen at $114 per cwt, while dressed trade was reported at $183 per cwt. This is fully steady from last week, and may carry the stable tone through the end of the week on any cleanup activity needing to be done. Although bids still remain in the South at $111 per cwt, no additional trade is reported at this point. This could limit additional activity through the week in most areas. Asking prices are seen at $112 and higher in the South while dressed trade is seen at $185 and higher per cwt in the North. The National Daily Direct afternoon hog report was $2.36 lower ($70-$84.50, weighted average $78.03) on 5,086 head sold. Corn futures were lower in light trade with September down 7 1/2 cents. Stock markets took a nosedive after President Donald Trump tweeted he will impose new tariffs on additional Chinese goods. The Dow Jones was down 256 points with the NASDAQ down 58 points.
LIVE CATTLE: Strong gains developed in nearby live cattle futures Thursday as traders focused on longer-term stability. Futures closed mixed, $0.20 lower to $1.07 higher. The October contract led the complex higher, rallying $1.07 per cwt. The firming live cattle market at the start of August may help bring stability to the rest of the complex and give commercial traders something to build on. Beef cut-outs: mixed, down $0.35 (select, $189.34) to up $0.70 (choice, $214.24) with light demand and offerings, 104 loads (61 loads of choice cuts, 25 loads of select cuts, 6 loads of trimmings, 12 loads of coarse grinds).
FRIDAY'S CASH CATTLE CALL: Steady to $1 lower. It is expected that most needed trade for the week may be wrapped up by the end of the day. There could be some additional cleanup activity in some areas, but the tone of the market is likely to have been set.
FEEDER CATTLE: Feeder cattle futures saw continued pressure Thursday despite gains in live cattle trade. Contracts closed $1.02 lower to $0.10 higher. Feeder cattle breaking away from live cattle and corn market moves is unusual, but limited volume seemed to keep most traders adjusting positions lower. Compared to the rest of livestock trade, feeder cattle futures have fared much better as prices still remain near recent highs and well above support levels set during mid-July. The CME cash feeder index for 7/31 is $142.23, up $0.08.
LEAN HOGS: Lean hog futures settled $0.42 to $4.02 lower. Futures quickly moved lower Thursday morning as the bearish shift in the market over the last week has consumed trade activity and left buyers unwilling or unable to step into the market. Futures saw a moderate reprieve at midday, pulling back from early losses, but then a Tweet by President Donald Trump about imposing tariffs on addition Chinese imports starting Sept. 1 sent hog futures into a tailspin at the end of the session. Nearby contracts have now broken through July support levels, leading to expectations of further liquidation across the complex. Pork values trickled higher as belly gains offset pressure in butt and picnic cuts. Pork cutout values added $0.24 per cwt, moving to $87.79 per cwt on 234 loads. CME cash lean index for 7/30 is $83.41, up $1.31. DTN Projected lean index for 7/31 is $84.11, up $0.70.
FRIDAY'S CASH HOG CALL: $1 lower to $1 higher. Widespread pressure in futures trade and generally light plant activity over the weekend and early next week is expected to limit packer support in cash markets Friday. Most bids are expected steady to $1 per cwt lower early Friday morning. Friday slaughter numbers are expected at 462,000 head. Saturday runs are expected at 34,000 head.
 |
| #completeherdhealth |
No comments:
Post a Comment