GENERAL COMMENTS:
The cash cattle trade remains untested with just a few asking prices in the South identified at $132-133. Strangely, Mandatory did report more than 3,000 head sold in Iowa on Monday at $208/$123.70). According to the midday report, the national hog base is 0.88 lower compared with the Prior Day settlement ($61.00-69.00, weighted average $66.99). Corn futures are a penny plus higher in late-morning business. Light commercial buying seems somewhat evident in largely featureless activity. Boosted by strong evidence of consumer confidence, the stock market is higher near midday with the Dow up 93 points and the Nasdaq better by 18.
LIVE CATTLE:
Live futures are holding moderate gains at midday (i.e., up 10 to 57 points), supported by short covering/profit taking following Monday's crash. Chart supports appear to be above 120 basis April. Tall country premiums should continue to cause aggressive bears to think twice. Beef cut-outs are higher at midday, up 0.29 (choice, $220.20) to 0.80 (select, $214.42) with very light box movement (29 loads of choice cuts, 9 loads of select cuts, zero loads of trimmings, 9 loads of coarse grinds).
FEEDER CATTLE:
Feeder issues are narrowly mixed near the top of the noon hour (i.e., from 22 points higher to 27 lower). Trade volume is very light with most focusing on potential developments in the live market.
LEAN HOGS:
Lean contracts are moderately lower as the trade prepares to move into the final hour of business. Pressure is tied to spillover selling from yesterday's implosion and nervousness regarding the ability of wholesale demand to handle the high tide of early spring production and tonnage. The pork carcass value fell by more than a buck according to the noon report, particularly pressured by a lower belly primal (i.e., off $6.42). Pork cut-out: $77.94, off $1.18. CME cash lean index for 03/24: 70.24, off 0.67 (DTN Projected lean index for 03/27: NA).
No comments:
Post a Comment