Moderate to strong pressure has developed late
Tuesday morning although the tone and activity levels remain extremely
different than over the last couple of days. Limited market pressure
trickled into morning trade as losses have slowly built. But there seems
to be the focus on underlying support developing which may stabilize
price levels over the next couple of days. Corn futures are lower in
light morning trade. September corn futures are 1/4 cents lower. Stock
markets are lower in active trade. Dow Jones is 125 points lower with
NASDAQ down 46 points.
LIVE CATTLE:
Firm pressure is seen in live cattle trade with
futures holding $1 to $1.50 per cwt losses in nearby contracts. The lack
of support in the market is evident as traders back away from trade
hopes with China. The expectation that this will be a long road before
any significant developments are seen has caused October futures to push
below $100 per cwt once gain. Cash cattle activity remains quiet with
no additional bids or asking prices developing. Trade is expected to
hold out until later in the week. Boxed Beef cut-outs at midday are
mixed, $0.24 lower (select) and up $0.03 (choice) with light movement of
43 total loads reported (18 loads of choice cuts, 14 loads of select
cuts, 8 loads of trimmings, 4 loads of ground beef).
FEEDER CATTLE:
Firm pressure is seen Tuesday morning as traders
have quickly backed up from early week gains. The concern of continued
trade issues and firm weakness in live cattle trade has sparked
increased underlying weakness through the entire complex.
LEAN HOGS:
Market pressure has pulled back from the
aggressive Monday gains. Although the tone of the market remains weak
and prices are lower, significant selling pressure is holding out at
this point. It is likely that traders are trying to find a sense of
stability given the still firm domestic demand seen across the market.
Cash prices are lower on the National Direct morning cash hog report.
The weighted average price is down $1.44 at $61.27 per cwt with the
range from $55 to $69.50 on 4,539 head reported sold. Pork values firmed
following aggressive gains in rib cuts. Pork cutouts added $0.98 per
cwt at $80.63 per cwt with 120 loads traded. Lean hog index for 8/22 is
$75.94, down 1.10, with a projected two-day index at $74.50, down 1.44.
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