GENERAL COMMENTS:
Mixed trade is scattered through livestock futures Wednesday morning with traders focusing on adjusting market prices following the wide market swings of the last week. Nearby live cattle trade and most feeder cattle futures are showing softness, although limited volume is likely to add to further morning pressure in most contracts. October lean hog futures are posting firm gains of $1 per cwt, driven by buyers slowly but steadily moving back into nearby contracts. Although concern remains that volatility in meat values could limit additional buying during the last half of the week. December corn is up 8 cents per bushel and December soybean meal is down $1.40 per ton. The Dow Jones Industrial Average is up 132 points.
LIVE CATTLE:
Live cattle futures have been generally weak Wednesday morning. August through December contracts posted losses with October futures pulling back from recent highs with a $1 per hundredweight (cwt) loss. The downward pressure in the futures is still not concerning, given the fact that prices have been at or near contract highs through the first half of the week. Moderate positioning is likely to still develop over the next couple of days as traders continue to focus on tighter long-term support for the beef market. Cash cattle activity remains generally quiet at midweek with bids still unavailable. The focus will likely be on additional activity later in the week, but a few deals could start to trickle into the market at the end of the day. A few asking prices are seen at $125 and higher live basis in the South and $205 and higher dressed in the North. The Fed Cattle Exchange Auction on Wednesday listed a total of 4,676 head and 578 head sold; 445 were scratched from the auction; and 3,653 head were listed as unsold, as they did not meet the reserve prices, that ranged from $118 to $127. Opening prices ranged from $118 to $121.75, high bids ranged from $118.00 $122.25. The state-by-state breakdown looks like this: Texas 4,415 total head, with 578 head sold at $118 to $122, 3,392 head went unsold and 445 were scratched from the auction; Kansas 72 total head, all of which went unsold; Oklahoma 189 total head, all of which went unsold.
Wednesday morning's boxed beef prices are lower in light trade, with choice cuts $0.07 lower at $347.51 and selects down $1.48 at $315.42 on a total count of 68 loads. Dow Jones estimated Wednesday's cattle slaughter at 121,000, steady with a week ago.
FEEDER CATTLE:
Back and forth price shifts have been seen all Wednesday morning. The stronger corn market price added early softness to feeder cattle futures, although buyers quickly stepped back into the complex as traders are still trying to fine tune market shifts following last week's Cattle on Feed report. Most contracts are holding light to moderate gains at midday with traders focusing on growing longer-term demand in the feeder cattle complex. The CME Feeder Index was priced at $156.60 for Aug. 23.
LEAN HOGS:
Active gains have rebounded in lean hog futures Wednesday morning with October and December futures holding triple-digit gains at midday. October futures are $1.40 per cwt higher, but the underlying support in the complex could help to draw limited but supportive price moves through the rest of the day. Prices still remain well restricted within the sideways market range, which may lead to additional price moves without a significant change in market direction through the rest of the month. Pork primals are much more stable at midweek but could see more movement in Wednesday afternoon's report. Cutouts are down $0.39 at $113.23 Wednesday morning on 236.37 loads. Negotiated hog prices are 2.53 higher per cwt lower with a weighted average price of $94.19 per cwt on 4,999 head on the National Direct Morning Hog Report. The swine/pork market formula price is listed at $102.07 per cwt. Dow Jones estimated Wednesday's hog slaughter at 474,000 -- 1,000 below a week ago, while 6,000 less than year ago levels. The CME Lean Hog Index is estimated at $106.34 for Aug. 24.
No comments:
Post a Comment