Buyer support seen early Monday morning has eroded as traders are focusing on the pullback in live cattle and feeder cattle markets. Lean hog futures remain sharply higher as aggressive support is returning to the market following the beginning of the month. Corn prices are lower in light trade. December corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 107 points higher while Nasdaq is up 6 points.
LIVE CATTLE:
Firm losses have quickly developed in live cattle trade at midday following the inability to hold and sustain firm price support through the morning. This is allowing nearby contracts to trade $1 per cwt lower as traders are concerned about the pressure seen in beef values as well as growing pressure through the rest of the cattle complex. Cash cattle markets remain quiet with asking prices and bids undeveloped. Active trade may not be seen until the second half of the week. Beef cut-outs at midday are lower, $0.76 lower (select) and down $0.07 per cwt (choice) with moderate movement of 79 total loads reported (28 loads of choice cuts, 14 loads of select cuts, 9 loads of trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Firm pressure is redeveloping in feeder cattle futures as traders are looking for additional longer-term support through the entire complex, but light volume is limiting trade activity across the complex. Nearby contracts are holding losses of 70 to 90 cents per cwt in most contract months with the inability to bring trade interest back to the complex.
LEAN HOGS:
Strong triple-digit gains have quickly developed in lean hog futures, creating additional follow-through buying activity in all hog markets. This is quickly drawing commercial support back to the complex with nearby contracts holding gains from $1 to $2.30 per cwt. This overall support in the morning is helping to spark increased market interest. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.02 at $46.72 per cwt with the range from $42 to $48 on 3,484 head reported sold. Cash prices lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $1.60 at $46.52 per cwt with the range from $42 to $48 on 350 head reported sold. The National Pork Plant Report reported 132 loads selling with prices gaining $0.63 per cwt. Lean hog index for 9/28 is at $54.84 down $0.70 with a projected two-day index of $54.29, down 0.55.
No comments:
Post a Comment