GENERAL COMMENTS:
The livestock complex is moving lower into Tuesday's noon hour as traders are dramatically distancing themselves from the cattle complex and the lean hog market is catching a little of the spillover effect. With concerns continuing to linger about the economy and other external pressures, the cattle complex can't seem to find any stable technical footing in the market. December corn is down 1/2 cent per bushel and December soybean meal is down $1.10. The Dow Jones Industrial Average is down 49.61 points.
LIVE CATTLE:
It's an unnerving day for the live cattle complex as the futures are currently trading alongside the market's current support plane. With external market pressures looming from the economy and deman, the cattle complex is once again headed for lower prices. October live cattle are down $3.32 at $175.67, December live cattle are down $3.17 at $175.20 and February live cattle are down $3.25 at $176.07. At this point, cattlemen are praying the market closes no lower than the prices it's currently trading at, as breaking through the market's existing support plane would open the complex to further downward pressure. No cash cattle trade has developed at this point, but asking prices are noted in the South at $187-plus. Trade will likely be delayed until at least Wednesday, if not later in the week.
Boxed beef prices are lower: choice down $1.89 ($313.66) and select down $0.30 ($301.71) with a movement of 78 loads (51.61 loads of choice, 13.99 loads of select, 5.35 loads of trim and 7.29 loads of ground beef).
FEEDER CATTLE:
The flood gates have opened for the feeder cattle complex as the market is currently spiraling $3.00 to $5.00 lower. With the live cattle complex trading lower, traders have jumped and run from the feeder cattle complex, which is why the market is currently trading below its previous support plane. This, unfortunately, could mean the market will once again be looking for a new short-term bottom. August feeders are down $3.17 at $239.20, September feeders are down $5.30 at $233.95 and October feeders are down $4.87 at $231.00.
LEAN HOGS:
The lean hog complex is also trading lower, but its losses at this point aren't nearly as severe as those in the cattle complex. Thankfully pork cutout values are slightly higher at midday, which indicates that Tuesday's market weakness is solely being driven by technical fears and concerns. October lean hogs are down $0.30 at $76.50, December lean hogs are down $0.60 at $68.15 and February lean hogs are down $0.57 at $71.62.
The projected CME Lean Hog Index is delayed from the source. Hog prices average $84.22 on the Daily Direct Morning Hog Report, ranging from $81.00 to $85.00 on 4,494 head and a five-day rolling average of $84.33. Pork cutouts total 168.08 loads with 138.41 loads of pork cuts and 29.67 loads of trim. Pork cutout values: up $0.40, $97.49.
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