Strong triple-digit losses have quickly swept
through livestock trade Friday morning. Most of the activity is based on
end-of-week positioning following previous gains and very thin market
trade at the end of the week. Corn prices are lower in light trade. May
corn futures are 3 cents lower. Stock markets are mixed in light trade.
The Dow Jones is 25 points higher while Nasdaq is down 21 points.
LIVE CATTLE:
Moderate to firm pressure is seen through the
live cattle complex late morning Friday. Traders have been quickly
influenced by the eroding feeder cattle market. Even though volume
remains extremely light in all live cattle markets, the weaker prices
could add some uncertainty through early next week. Cash cattle activity
remains sluggish at midday despite increased interest in bids through
the morning. Bids are available in all areas with live bids seen at $120
to $122 per cwt and $193 dressed. There are reports of a small string
of cattle selling at $193 per cwt dressed basis. But in general these
bids are well below asking prices of $127 to $128 live and $196 and
higher dressed. Boxed beef cut-outs at midday are steady to lower, $0.14
lower (select) and steady per cwt (choice) with light movement of 70
total loads reported (35 loads of choice cuts, 17 loads of select cuts, 7
loads of trimmings, 10 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have turned sharply lower
with all remaining 2018 contracts holding triple-digit losses. Tight
trading ranges are seen Friday due to sluggish overall trade volume.
This is keeping May through November futures $1.17 to $1.37 per cwt
lower with limited additional direction expected through the remainder
of the day. This pullback in the market is eroding previous buyer
support seen earlier in the week, but most of the activity is based on
lack of market volume rather than any change in fundamental or technical
direction.
LEAN HOGS:
Lean hog futures have posted sharp morning
losses in nearby trade as traders are quickly backing away from previous
market gains. June futures are leading the complex lower with a $2.27
per cwt loss as trade volume remains sluggish at the end of the week. It
is uncertain at this point if this pullback in the market will continue
to draw selling pressure early next week, or if traders will continue
to look at this as a position-taking opportunity before they step back
into the market. Cash prices are lower on the National Direct morning
cash hog report. The weighted average price is down $0.02 at $61.07 per
cwt with the range from $56.00 to $61.12 on 2,466 head reported sold.
Cash prices are unreported due to confidentiality on the Iowa/Minnesota
Direct morning cash hog report. The National Pork Plant Report posted
192 loads selling with carcass values gained $0.53 per cwt. Lean hog
index for 5/9 is at $63.73 up 0.18 with a projected two-day index of
$64.06, up 0.33
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