GENERAL COMMENTS:
Hog futures have posted additional losses Monday morning as traders still seem to have a hard time finding a longer-term range that most are comfortable with. Market variability over the past two weeks has been evident in all livestock trade, but it appears the lean hog futures still has room to wander, although the bullish tone seen in late September is keeping prices elevated. Cattle futures have posted limited activity and price direction Monday morning with live cattle steady to 30 cents higher. The focus on increased buyer support from both commercial and noncommercial interest through the first half of October is likely to help set up the cattle market for a much more defined trading range through the end of the year. December corn is up 3 cents per bushel and December soybean meal is down $0.70 per ton. The Dow Jones Industrial Average is up 177 points with Nasdaq up 73 points.
LIVE CATTLE
Live cattle futures are quiet early Monday morning with limited movement seen in most contracts. Narrow gains are seen through most of the morning in nearby contracts, while more active price support is seen in summer and fall contracts. Traders are still trying to adjust to the higher price levels seen last week, although supportive buying is slowly moving back into the complex, helping to draw additional market gains and hopefully spark follow-through buying interest through the rest of the week. Cash cattle activity remains quiet, which is typical for a Monday morning as bids and asking prices are still undefined and likely not to see much interest until Wednesday or later. The pattern over the last few weeks is for moderate trade to develop on Wednesday, setting the tone for the week, which likely to keep most from looking for direction too early in the week. Many will see if this pattern of midweek trade continues -- and could limit any early interest from either side.
Monday morning's boxed beef prices are mixed in light trade, with choice cuts $0.15 lower at $283.12 and selects up $1.69 at $264.43 on a total count of 48 loads. Dow Jones estimated Monday's cattle slaughter at 119,000, 1,000 less than a week ago and 2,000 more than year-ago levels.
FEEDER CATTLE
Narrow gains have slowly but steadily stepped into feeder cattle trade Monday morning. The direction of the market remains quiet early in the week as traders confirm last week's gains but are unwilling to aggressively move prices higher than current levels. It appears that feeder cattle trade is starting to establish a more defined trading range from $158 to $162 per cwt. Even with firming grain prices Monday morning, buyers still are focusing on longer-term demand needs and the expectation that cattle supplies will be lighter once all placements are put into feedlots for the year. The CME Feeder Cattle Index was priced at $154.57 for Oct. 7.
LEAN HOGS
Lean hog futures have continued to steadily back away from aggressive gains seen during the last week of September. Although markets have slipped lower over the last week, the aggressive upward swing previously built into the market still has traders looking at a positive moving market complex. December futures are leading the morning losses with a $1.27 per cwt loss. Limited trade continues to be available at this point as traders try to find a sense of stability in both pork values and cash hog prices during the week. Cutouts are up $5.44 at $112.43 Monday morning on 146.45 loads. Negotiated hog prices are $0.69 lower at $68.37 per cwt on 3,806 head. The swine/pork market formula price is listed at $91.11 per cwt. Dow Jones estimated Monday's hog slaughter at 475,000, 2,000 more than a week ago, while 2,000 more than year-ago levels. The CME Lean Hog Index is listed at $91.60 per cwt for Oct. 8.
No comments:
Post a Comment