Aggressive price gains have flooded through cattle markets midday Wednesday following light to moderate trade activity on the Fed Cattle Exchange Auction. The shift from aggressive triple-digit losses which developed early in the morning is quickly changing the tone of the entire cattle complex, and may spark renewed buyer activity later in the week. Corn prices are higher in light trade. September corn futures are 5 cents higher. Stock markets are higher in light trade. The Dow Jones is 28 points higher while Nasdaq is up 38 points.
LIVE CATTLE:
Sharp gains have quickly moved into live cattle futures late Wednesday morning. The lack of support in the complex and strong triple-digit pressure in feeder cattle markets left the complex weak through much of the morning. But renewed buyer interest has quickly redeveloped across the market, moving nearby live cattle futures $2 per cwt higher with additional gains possible in the last hour of trade. Cash cattle markets remain generally quiet through the morning in feedlot country with a few cattle reported sold at $188 on a dressed basis in Nebraska. This is generally $2 per cwt lower than last week, but not enough cattle to establish a good market test. Live bids are developing in all areas at $115 to $117 during the morning. Activity on the Fed Cattle Exchange Auction report today listed a total of 2,912 head, with 708 head actually sold, 1,467 head listed as unsold, and 737 listed as PO. The weighted average price was $118.27 The state-by-state breakdown looks like this: KS 344 total head, with 344 head sold at $118.25; NE 2,101 total head, with zero head sold, 1,427 unsold and 674 listed as PO ($117.00-$117.75); TX 282 total head, with 282 head sold at $118.25-$118.50; CO 82 total head, with 82 head sold at $118.00; IA 40 total head, with zero head sold; other states (OK) 63 total head, with zero head sold, and 63 listed as PO ($117.00). The delivery date/weighted average break downs are as listed: 1-9 day delivery: 626 head sold $118.30; 1-17 day delivery 82 head sold, $118.00; 10-17 day delivery 195 head, no sales; 17-30 day delivery 803 head, no sales. Beef cut-outs at midday are mixed, $0.15 lower (select) and up $0.09 per cwt (choice) with active movement of 103 total loads reported (49 loads of choice cuts, 26 loads of select cuts, 14 load of trimmings, 14 loads of ground beef).
Feeder Cattle:
Firm gains have quickly developed across all cattle futures Wednesday morning as feeder cattle futures quickly erased sharp losses and continue to hold gains at or near $1 per cwt higher near midday. This turn around in the market accounts to a $3 per cwt price swings through the morning in nearby contract prices. Overall lack of trade volume in the complex is one reason for the market shift, but renewed underlying support stepping back into live cattle trade with expectations that stability may be seen in cash cattle trade is helping to instill additional market momentum.
LEAN HOGS:
Firm gains have moved into lean hog futures following the renewed support seen in cattle futures during late morning. The spill over support in the lean hog futures is still are result of extremely light trade activity across all contract months. August futures are leading the market higher with midday gains of $1 per cwt helping to spark renewed underlying support through the complex. But this support remains lackluster when it comes to long term deferred contracts as trade remains mixed in a narrow trading range. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.29 at $84.27 per cwt with the range from $83.50 to $85.50 on 3,894 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $1.48 at $84.42 per cwt with the range from $83.50 to $85.50 on 685 head reported sold. The National Pork Plant Report reported 275 loads selling with prices adding $1.26 per cwt. Lean hog index for 7/17 is at $92.46 down $0.04 with a projected two-day index of $92.40, down $0.06.
No comments:
Post a Comment