GENERAL COMMENTS:
Live cattle show a bit of optimism to begin the week with moderate gains. Traders seem to be testing the waters. Feeder cattle show little direction with some early spread trading taking place. Hog futures tried to make a run higher but failed as aggressive buying dried up. December corn is down 2 1/4 at $4.91 and December soybean meal is down $2.80 at $387.2.
LIVE CATTLE:
Live cattle futures are posting double-digit gains at the midday point of the market Monday. Traders are hopeful that cash will be no worse than steady this week, but it is too early to tell. October live cattle are $0.30 higher at $185.425, December live cattle are $0.50 higher at $187.25, February live cattle are $0.40 higher at $191.325. So far it has been an inside trading day technically with prices unable to hold the early highs. Boxed beef prices are higher with choice up $1.39 and select up $2.23 with a movement of 54 loads.
FEEDER CATTLE:
Feeder cattle traders see little direction and have resorted to spread trading with pressure on nearby October and November contracts. Unlike live cattle, feeders could not hold the higher prices falling below the low of Friday. With more feeders available for buyers at auctions, upside price potential may be limited for the time being. October feeders are $1.35 lower at $248.52, November feeders are $1.00 lower at $250.57 and January feeders are $0.05 lower at $252.20.
LEAN HOGS:
Hogs are under pressure in response to lower cash and lower cutouts on Friday. Packers may follow the same pattern as they have the past few weeks with being more aggressive buyers early. The Daily Direct Morning hog report showed an average price of $76.98. Pork cutouts are up $1.39. The lean hog index is down at $82.11.
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