Trade volume remains sluggish late Friday morning with light losses developing in live cattle futures following mixed beef value moves. The overall lack of support in the complex and pullback from early gains continues to add to the sharp losses in cash trade earlier in the week. Strong triple-digit pressure is quickly developing in lean hog futures, created positioning opportunities through the complex. Corn prices are lower in light trade. July corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 20 points higher while Nasdaq is up 26 points.
LIVE CATTLE:
Early gains in cattle markets, and live market futures have faded quickly as trades have focused on follow through selling pressure which has developed through the week. The sharp losses in cash prices and developing pressure in beef values is putting even more pressure on live cattle trade. Uncertainty surrounding overall cattle numbers in feedlots on the cattle on feed report is also adding to the market volatility even though volume remains light. Cash cattle trade appears to be done for the week with no bids developing following sharply lower cash business seen over the last two days. Beef cut-outs at midday are mixed, $0.09 higher (select) and down $3.38 per cwt (choice) with light movement of 42 total loads reported (23 loads of choice cuts, 10 loads of select cuts, 4 loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Light gains have continued to hold in feeder cattle futures through late morning despite the building pressure in live cattle markets. Trade volume is sluggish across the market as trades seem to be willing to call it a week in many aspects of the market. There is likely to be some additional market shifts seen just before closing bell as the aggressive placement expectations likely to develop in the cattle on feed report which will be released at 2 p.m. central time may spark additional market movement early next week across the complex.
LEAN HOGS:
Triple-digit losses are seen in all nearby lean hog futures except front-month July contracts Friday morning. The aggressive late-week pressure in the complex is focused on end-of-week position taking despite fundamental support and strong cash and pork value gains. Light trade volume is seen through the morning and expected to hold through the rest of the day with traders unwilling to step back into the market in order to shift the market direction at this point. Most contracts are holding losses of $1.30 to $1.80 per cwt heading into the weekend break. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.75 at $85.39 per cwt with the range from $85.00 to $87.00 on 3,920 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.97 at $85.72 per cwt with the range from $85.00 to $87.00 on 1,955 head reported sold. The National Pork Plant Report reported 87 loads selling with prices adding $1.42 per cwt. Lean hog index for 6/21 is at $89.30 up $1.27 with a projected two-day index of $90.17 up $0.87.
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