Lean hog futures are testing limit gains Tuesday morning as traders remain generally unrestricted as they return from the holiday weekend. Prices are near long-term lows, and there is potential to set a new market tone during early September, which may create additional long-term interest. Corn futures are lower in light morning trade. December corn futures are 7 cents lower. Stock markets are lower in active trade. Dow Jones is 347 points lower with NASDAQ down 78 points.
LIVE CATTLE:
Limited gains have slowly developed in nearby live cattle trade with December futures currently leading the complex higher with a 90-cent gain. There are firm gains in all nearby contracts, but the lack of volume moving into the complex continues to create uncertainty in the entire market. Traders are still looking for increased direction given the extremely wide gap between boxed beef values and cash values that has developed over the last month. This continues to add short- and long-term concerns about the viability of the current market course. Cash cattle interest is generally undeveloped following light trade at lower prices last week. Asking prices and bids are unavailable and are likely to remain that way until midweek or later. The firmness in futures trade, may help to solidify early asking prices by feedlot managers but is not expected to show much evidence until later in the week. Boxed beef cutouts at midday are mixed, $0.39 higher (select) and down $0.02 (choice) with light movement of 28 total loads reported (12 loads of choice cuts, 10 loads of select cuts, no loads of trimmings, six loads of ground beef).
FEEDER CATTLE:
Early buying moved into feeder cattle trade with triple-digit gains developing early Tuesday morning. The continued pressure in corn trade combined with limited futures support in all livestock markets is helping to solidify futures support in nearby feeder cattle trade during early September. Currently, trade remains limited, but traders are building on underlying short-term support of $132.30 per cwt. Although this support level remains generally thin, if prices can hold above these levels in September contracts through the week, additional commercial buyer support is likely to redevelop.
LEAN HOGS:
Active support is moving through lean hog futures trade with October contracts flirting with limit gains as prices are $2.87 per cwt higher midday Tuesday. The strong move higher is helping break out of the lackluster interest after setting long-term lows the last two weeks. Even though limited support is expected in cash hog and pork values during early September, renewed traction above $65 per cwt is likely to help sustain additional commercial buyers back into the complex during September. Trade uncertainty with China continues to loom over the market, although the expectation of long-term pork demand may keep the market stabile. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Pork values rallied higher following a double-digit gain in belly cuts. Pork cutouts added $2.69 per cwt at $75.00 per cwt with 177 loads traded. Lean hog index for 8/29 is $69.45, down 1.74, with a projected two-day index is unreported at this time.
 |
| #completeherdhealth |
No comments:
Post a Comment