Monday, October 16, 2017

Monday Midday Livestock Market Summary - Livestock Futures Stuck in Narrow Range Monday Morning

GENERAL COMMENTS: 
Livestock futures are lightly traded with strong buyer activity flooding into front month lean hog futures contracts, while the rest of the livestock market remains stuck in a narrow range. Light trade is expected to keep traders on the sidelines through most of the session. Corn prices are lower in light trade. December corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 38 points higher while Nasdaq is up 7 points.
LIVE CATTLE:
Live cattle futures are mixed in a narrow range in all contracts except front month October futures. October contracts are holding a 75-cent-per-cwt loss, with traders continue to roll into December and February contract months. The remainder of nearby and deferred futures are futures are stuck in directionless ranges as traders focus on the lack of movement in feeder cattle trade and sluggish outside market moves. Cash cattle trade is quiet with show list distribution the main order of business for the day. Bids and asking prices remain undeveloped at this point and likely will be quiet all day. Beef cut-outs at midday are higher, $0.77 higher (select) and up $0.51 per cwt (choice) with light movement of 55 total loads reported (22 loads of choice cuts, 11 loads of select cuts, 15 loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are quietly traded as volume is still sluggish Monday morning in all cattle markets. October contracts are holding 35 cent gains, although the remainder of contracts are stuck in a narrow 20 cent range with lackluster activity expected to develop through the rest of the session. This could limit commercial buyer interest early in the week.
LEAN HOGS:
Light early support in lean hog futures has sparked additional strong buyer support in nearby lean hog futures. December futures have posted $1.02 per cwt gains at midday with prices moving above $63.22 per cwt. This is creating widespread support in all contracts, although most of the volume has been limited to nearby contracts. Cash prices are higher on the National Direct morning cash hog report. The weighted average price higher $0.48 at $58.07 per cwt with the range from $53.00 to $60.00 on 5,971 head reported sold. Cash prices higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.73 at $59.06 per cwt with the range from $53.00 to $60.00 on 3,293 head reported sold. The National Pork Plant Report reported 145 loads selling with prices adding $0.61 per cwt. Lean hog index for 10/12 is at $59.51 up $0.39 with a projected two-day index of $60.24, up 0.73.

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