Tuesday, October 3, 2017

Tuesday Midday Livestock Market Summary - Limit Gains Hold October Hog Futures Higher

GENERAL COMMENTS: 
Strong triple-digit gains have quickly offset early mixed trade seen across the livestock market. October lean hog futures are limit higher, which is helping to spark additional underlying support. 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 69 points higher while Nasdaq is up 5 points.
LIVE CATTLE:
Triple-digit gains have quickly developed in live cattle futures with traders looking for increased buyer support seen through the overall complex. This move has pushed front month contracts firmly higher, although the main focus is based on December contracts which are trading more than $1.50 per cwt higher at midday. Cash cattle markets remain at a standstill with very little interest shown by packers or feeders at this point. Bids and asking prices are silent Tuesday morning. Active trade may not be seen until the second half of the week. Beef cut-outs at midday are higher, $1.19 higher (select) and up $1.33 per cwt (choice) with light movement of 56 total loads reported (28 loads of choice cuts, 14 loads of select cuts, 7 loads of trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Strong triple-digit gains have quickly moved into feeder cattle trade Tuesday morning. The light to moderate support seen early in the session has given way to gains of $2 per cwt. This overall support in the complex continues to draw increased market support to the complex as traders focus on longer term market expectations through the 2018 year. October and November futures are holding $2.35 and $2.85 per cwt gains respectively, helping to bring additional commercial support to the entire complex.
LEAN HOGS:
Buyer support has exploded in front-month October lean hog futures. This has created additional longer-term support through the complex with all nearby contracts holding triple-digit gains. October futures are locked in limit-higher trade activity with prices trading at $60.25 per cwt. The narrowing of the October-to-December price spread is helping to put more focus on the overall long term direction of firming nearby contract prices as well as support in cash and pork values. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.02 at $48.63 per cwt with the range from $46.50 to $51.00 on 5,316 head reported sold. Cash prices higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price gained $1.07 at $50.71 per cwt with the range from $46.50 to $51.00 on 1,896 head reported sold. The National Pork Plant Report reported 232 loads selling with prices gaining $0.34 per cwt. Lean hog index for 9/29 is at $54.29 down $0.55 with a projected two-day index of $54.39, up 0.10.

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