Monday, July 3, 2017

Monday Midday Livestock Market Summary

GENERAL COMMENTS:

Feedlot activity this morning has been limited to the distribution of new showlists. The early month offering appears to be generally larger with only Nebraska showing fewer ready steers and heifers. According to the midday report, the national hog base is $1.13 lower compared with the Prior Day settlement ($82.00-86.00, weighted average $84.84). The corn trade is roughly 8 cents higher as we move toward an early, pre-holiday close. Corn seems to be supported by spillover strength from beans and a generally lack of selling interest. Wall Street is mixed in late morning trading with the Dow up 159 points and the Nasdaq off 27.

LIVE CATTLE:
Live contracts are moderately lower (off 25 to 35) as traders look toward a noon close. The lightly tested market is pressured by beef demand worries and fears the the cash market will continue to erode in the weeks ahead. Beef cut-outs are mixed at midday, up 0.02 (select, $208.44) to off $1.16 (choice, $223.57) with light to moderate box movement (35 loads of choice cuts, 27 loads of select cuts, 1 load of trimmings, 6 loads of coarse grinds).

FEEDER CATTLE:
Feeder issues are sagging as much as triple digits late in the session, pressured by the implications of higher corn prices and a general lack of buying interest.

LEAN HOGS:
Lean futures are well supported today, though significance is tough to measure given the light trade volume. Nearbys are lifted by limited bull spreading interest and further signs of decent product demand. Carcass value is sharply higher at midday with all primals helping except the picnic. Pork cut-out: $104.22, up $1.30. CME cash lean index for 06/29: 91.72, up 0.06 (DTN Projected lean index for 06/30: 91.71, off 0.01).

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