Sharp triple-digit gains have continued to move into the cattle complex as markets have posted strong upward market support over the past two consecutive days. This is helping to spark some additional longer-term interest into the market and potentially setting market lows in nearby contracts. Corn prices are higher in light trade. December corn futures are 1/4 cents per bushel higher. Stock markets are mixed in light trade. The Dow Jones is 76 points lower while Nasdaq is up 2 points.
LIVE CATTLE:
Strong triple-digit support has quickly moved through the nearby live cattle complex with traders focusing on the overall strength that started to redevelop Tuesday. This entire week is a little odd given the Thanksgiving day holiday, and overall limiting trade volume in all contracts. Firm follow through buying has helped to bring some traders aggressively back into the market as they focus on longer-term support and the potential to regain losses seen in early November. Trade is expected to remain sluggish through the end of the session although the focus on previous gains may help to solidify nearby and deferred market buying activity. Cash cattle activity remains sluggish with no trade developing at this time due to the light to moderate trade already seen this week. It is expected that most activity, especially in the South has already been put to bed. This could leave markets in the current range with bids at $118 to $119 live and $188 to $190 dressed. Sales at these levels would be steady to $1 per cwt higher than Tuesday, but steady to $1 lower than week ago levels. Activity on the Fed Cattle Exchange Auction remained quiet also through the morning with a total of 955 head offered, although no sales were reported on the Auction. A total of 411 head were listed as Passed over. All of the passed over cattle were in Kansas. Beef cut-outs at midday are higher, $0.26 higher (select) and up $0.29 per cwt (choice) with active movement of 118 total loads reported (52 loads of choice cuts, 31 loads of select cuts, 16 loads of trimmings, 19 loads of ground beef).
FEEDER CATTLE:
Strong buying is seen in all cattle markets Wednesday morning. The focus on light trade limiting overall market resistance is helping to secure triple-digit gains across all markets. This overall support in the complex may bring additional volatility Friday when the few traders willing to move back into the market on the shortened trading session trickle into the market.
LEAN HOGS:
Strong midday gains are seen through the lean hog futures complex with traders focusing on the overall buyer support seen across the complex heading into the Thanksgiving holiday. Although markets will be open on a shortened basis Friday, most traders are likely to exit the market and not return until next week. Firm gains are holding 70 to 85 cent support in nearby contracts, helping to offset the losses seen Tuesday. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.05 at $56.64 per cwt with the range from $50.00 to $57.00 on 6,881 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.03 at $56.88 per cwt with the range from $53.00 to $57.00 on 5,146 head reported sold. The National Pork Plant Report is unavailable at this time due to submission problems. Lean hog index is unavailable at this time.
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