GENERAL COMMENTS:
Active buyer support is seen through all nearby lean hog futures contracts with October breaking through the $90 per hundredweight (cwt) threshold once again after posting a $2.57 per cwt rally. The underlying support in all contracts has pushed most hog futures to triple-digit gains. Cattle markets are moving mostly higher as traders back away from previous days' losses, but it appears prices may not be able to move significantly higher through the end of the week. December through June live cattle futures are holding 10- to 25-cent gains, while feeder cattle futures have etched out 40-- to 7 cent gains. Trade is expected to remain sluggish through the remainder of the session. December corn is down 1/4 cent per bushel and December soybean meal is down $2.80 per ton. The Dow Jones Industrial Average is up 217 points.
LIVE CATTLE:
Live cattle futures are mixed in narrow to moderate trading ranges. Lightly traded August futures are seeing the most aggressive pressure, but traders are more focused on the adjustment to cash markets. The rest of the complex is holding narrowly mixed price moves with October and December futures slipping slightly lower, while 2022 contracts have regained limited buyer support. Traders appear to be focused more on position adjustments at the end of the week, rather than any significant market trend shift. This will likely keep prices hovering within the current trading range through the rest of the session. Cash cattle trade remains quiet Friday morning following light to moderate trade Thursday. It is still likely some additional trade will need to be done before the end of the week, which should create some late Friday packer interest. Trade developed Thursday in the South at $123 live basis and $202 dressed basis in Nebraska. These prices are generally $1 per cwt higher than last week's average. Asking prices remain at $124 and higher live and $205 and higher dressed on cattle remaining on showlists. It is uncertain just how much further cash prices will move through the end of the week even if additional trade is seen.
Friday morning's boxed beef prices are lower in light trade, with choice cuts $1.58 lower at $345.69 and selects down $4.13 at $315.46 on a total count of 41 loads. Dow Jones estimated Friday's cattle slaughter at 113,000 -- down 4,000 from a week ago.
FEEDER CATTLE:
Narrow to moderate gains are holding in feeder cattle futures Friday morning. The overall tone of the complex remains extremely sluggish at the end of the week with traders seemingly trying to adjust positions following the active price pressure earlier in the week. With nearby contracts moving to contract highs early in the week, the recent pullback seems to have brought about the correction that some had expected. This could spark additional buyer support over the near future; but so far, it appears most traders are comfortable holding prices generally steady and may look for further price support early next week. The CME Feeder Index was priced at $158.79 for Aug. 25.
LEAN HOGS:
Lean hog futures have remained the bright spot of the livestock market with October contracts leading the complex higher and posting aggressive $2.50 per cwt gains at midday. This has moved spot-month contracts above $90 per cwt, with the potential to hold these gains into the weekend. Although futures are still below early August highs, current gains have pushed price levels to the highest level in over three weeks, which may initiate additional buyer momentum early next week. All nearby contracts are holding triple-digit gains as traders focus on the potential for additional fundamental support heading into the Labor Day holiday. Cutouts are up $3.19 at $119.59 Friday morning on 214.29 loads. Negotiated hog prices are 0.89 lower with a weighted average price of $92.09 on 4,405 head on the National Direct Morning Hog Report. The swine/pork market formula price is listed at $102.13 per cwt. Dow Jones estimated Friday's hog slaughter at 467,000 -- 4,000 lower than a week ago, while 10,000 less than year ago levels. The CME Lean Hog Index is estimated at $104.79 for Aug. 25.
No comments:
Post a Comment