Strong buyer support is moving into lean hog futures trade as buyers are focusing on a late month rally through the complex. This is helping to bring increased support to the market despite still weak market fundamentals. Cattle markets remain under pressure with feeder cattle futures leading the market lower at midday. Corn prices are higher in light trade. September corn futures are 8 cents higher. Stock markets are higher in light trade. The Dow Jones is 44 points higher while Nasdaq is up 55 points.
LIVE CATTLE:
Mixed trade is seen in live cattle futures at midday following moderate pressure which was seen through the live cattle market earlier in the session. This is creating some firmness in deferred futures, which is creating some market stability at the end of the week. August and October live cattle futures are holding at $105 per cwt which could create a market floor heading into the Labor Day holiday weekend. Cash cattle trade continues to develop with live trade developing in the North and South seen at $105 per cwt. This is $2 per cwt lower than last week's price levels. Bids are once again seen at $164 to $165 dressed, similar to where trade developed Wednesday. It is expected that trade through the rest of the week may develop near this range, and may trickle in through the rest of the week. Beef cut-outs at midday are higher, $0.46 higher (select) and up $0.41 per cwt (choice) with light movement of 61 total loads reported (31 loads of choice cuts, 12 loads of select cuts, 10 loads of trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Moderate pressure is seen across feeder cattle trade with buyers unwilling to step into the complex at this point. The back and forth shift in the complex continues to limit upward at the end of the month and with concerns that further cash market pressure looming ahead of the holiday weekend. Feeder cattle futures are confined in a very tight trading range with prices from August to November trading from $142 to $143 per cwt with overall activity limited to outside market direction as well as the live cattle complex.
LEAN HOGS:
Strong buyer support is seen in lean hog futures as end-of-month buyer support is trying to make up for the pressure seen through the rest of the month of August. Buyers see the overall all lean hog market as oversold and are quickly stepping into the complex before the end of the market and the holiday weekend. Even though cash markets are still showing signs of pressure, the market continues to remain firm and likely will close firm late Thursday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.04 at $62.51 per cwt with the range from $57.50 to $64.50 on 10,335 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $1.23 at $62.60 per cwt with the range from $57.50 to $64.50 on 7,665 head reported sold. The National Pork Plant Report reported 177 loads selling with prices fell $1.10 per cwt. Lean hog index for 8/29 is at $74.59 down $1.09 with a projected two-day index of $73.52, down $1.07.
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