Light to moderate support is still holding in
cattle trade although buyers are unable to maintain early morning
support at midday. The lack of follow-through interest in the complex is
expected to dwindle support thorugh the rest of the complex,
potentially limiting overall activity until closing bell Friday
afternoon. Hog futures remain firmly lower as fundamental pressure
remains the focus of trade. Corn prices are lower in light trade.
September corn futures are 2 cents lower. Stock markets are mixed in
light trade. The Dow Jones is 56 points higher while Nasdaq is down 4
points.
LIVE CATTLE:
Narrow gains are still holding across live
cattle futures with nearby futures giving back triple-digit support,
which developed early Friday morning. The ability to keep prices higher
has more to do with the overall lack of trade volume in the market late
in the week more than any other factor in the complex. Cash cattle
activity remains sluggish with just a few handful of trades taking place
here and there near $106 through the morning. Bids are seen at $107
live in the North and $105 in the South, although it appears the lion's
share of trade seems to be done, even though overall trade volume seems
to have been light to moderate at best earlier in the week. Beef
cut-outs at midday are mixed, $0.79 higher (select) and down $0.23 per
cwt (choice) with moderate movement of 94 total loads reported (48 loads
of choice cuts, 13 loads of select cuts, 23 loads of trimmings, 10
loads of ground beef).
FEEDER CATTLE:
Firm gains are holding in several feeder cattle
futures, although the ability to sustain early buyer support has quickly
eroded. August contracts have given back all of morning support with a 5
cent loss seen at midday. Traders continue to focus on the upcoming
cattle on feed report which will be released after the close of the
market Friday and is expected to post increased cattle placements as of
August 1st. This may create increased strong pressure early next week,
but for now, the lack of trade activity seems to be holding buyer
support in the market.
LEAN HOGS:
Mixed trade early in the session has been
replaced with moderate to firm pressure across the complex as trades
have focused on the overall lack of support in cash markets and
weakening pork values at the end of the week. The continued pressure in
fundamental markets has added even more softness to nearby contracts
even though overall trade volume remains extremely light across the
complex. Cash prices are lower on the National Direct morning cash hog
report. The weighted average price fell $1.52 at $66.34 per cwt with the
range from $64.00 to $68.00 on 2,986 head reported sold. Cash prices
are lower on the Iowa/Minnesota Direct morning cash hog report. The
weighted average price fell $2.11 at $65.88 per cwt with the range from
$64.00 to $67.50 on 730 head reported sold. The National Pork Plant
Report reported 128 loads selling with prices falling $0.12 per cwt.
Lean hog index for 8/23 is at $79.40 down $1.09 with a projected two-day
index of $78.23, down $1.17.
No comments:
Post a Comment