DTN Midday Livestock Comments 09/17 11:43
Mixed Livestock Trade Limits Volume
Sluggish market activity is seen early in the complex with active pressure
in lean hog futures easing slightly as the morning continues. Mixed trade looks
for increased buyer support early in the week.
By Rick Kment
Livestock futures are mixed in limited trade Monday morning. Initial
pressure has held lean hog futures lower, although prices have quickly bounced
back from early session lows. Cattle markets are mixed with firm gains in
feeder cattle futures trying to influence live cattle trade. Corn markets are
lower in light trade. September corn futures are 2 cents higher. Stock markets
are higher in light trade. The Dow Jones is 11 points lower, while Nasdaq is
down 65 points.
Early trade Monday is mixed as traders seem hesitant to step back into the
market. October futures have posted a 15-cent loss, moving to $113.65 per cwt.
Nearby futures are mixed from 15 cents lower to 12 cents higher, as traders are
unwilling to make any major market shifts Monday morning. Cash cattle markets
remain quiet following limited trade last week. Packers will be going into the
week very short bought, but this may not be enough to spark trade activity
until midweek or later. Boxed Beef cut-outs at midday are higher, $0.71 higher
(select) and up $1.94 per cwt (choice) with light movement of 41 total loads
reported (23 loads of choice cuts, 13 loads of select cuts, no loads of
trimmings, five loads of ground beef).
Limited buyer support has slowly but steadily moved back into the complex.
The strong gains that pushed prices to triple-digit gains and near contract
highs has offset any early morning market adjustments with overall buyer
support moving back into the complex. The recent support in live cattle trade,
combined with overall pressure in the grain trade, has added even more movement
through the entire complex. There may be some additional longer-term market
shifts developing through the next couple of months, but traders continue to
focus closely on live cattle market shifts and the direction of corn markets.
Lean hog futures have continued to erode through Monday morning with sharp
early losses quickly sparking widespread liquidation through nearby contracts.
December futures let the complex lower, falling over $2.60 per cwt I the first
hour of trade. Despite the building pressure, selling interest slowed
significantly, which curbed losses to $1 to $1.30 per cwt in nearby contracts
at midday. This may add some additional movement through the end of the
session. Cash prices are higher on the National Direct morning cash hog report.
The weighted average price is $1.57 higher at $50.36 per cwt with the range
from $43.00 to $54.00 on 6,150 head reported sold. Cash prices are higher on
the Iowa/Minnesota Direct morning cash hog report. The weighted average price
is $3.10 higher at $52.03 per cwt with the range from $43.00 to $54.00 on 2,648
head reported sold. The National Pork Plant Report posted 90 loads selling on
the morning report. Pork carcass values added $0.70 per cwt at $75.23 per cwt.
Lean hog index for 9/13 is at $51.85 up $1.77 with a projected two-day index of
$53.48, up $1.63.
Rick Kment can be reached at email@example.com
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