DTN Midday Livestock Comments 08/03 12:24
Sharp Gains Develop in Cattle Futures
Aggressive support is flooding into the livestock futures complex with
aggressive triple-digit gains driving live cattle and feeder cattle futures are
holding gains near $3 per cwt.
By Rick Kment
Aggressive triple-digit gains are seen through the entire livestock complex.
This could help to draw additional early week buying back into the market as
trade continues. Corn prices are lower in light trade. September corn futures
are 3 cents per bushel higher. Stock markets are mixed in light trade. The Dow
Jones is 91 points lower while Nasdaq is up 2 points.
Strong buyer support is seen through the live cattle futures following the
aggressive gains over $3 per cwt in feeder cattle. This could help to draw
additional interest into the market for the rest of the week. Cash cattle
markets are still quiet with show lists generally smaller given activity last
week. This could limit trade until midweek or later. Beef cut-outs at midday
are mixed, 0.41 higher (select) and down 0.18 per cwt (choice) with light
movement of 73 total loads reported (48 loads of choice cuts, 9 loads of select
cuts, zero loads of trimmings, 15 loads of ground beef).
Feeder cattle futures are holding aggressive price support after traders
quickly flooded into the market through the morning. Early-month buying
continues to focus on the potential of increased trade activity through the
next couple of weeks. This could spark additional buyer support, but trade
volume may slow through the end of the session.
Aggressive buyer support redeveloped through the lean hog futures market
early Monday as traders focused on the ability to draw additional trade
activity into the cattle market. Hog buyers seem to be trying to stay on the
same page as aggressively moving cattle markets. This could spark additional
movement through the rest of the week even though supplies remain heavy and
will continue to remain that way over the next few weeks. Cash prices are lower
on the National Direct morning cash hog report. The weighted average price fell
$1.16 per cwt to $73.17 per cwt with the range from $65.00 to $76.00 per cwt on
2,631 head reported sold. Cash prices are lower on the Iowa Minnesota Direct
morning cash hog report. The National Pork Plant Report reported 130 loads
selling with prices adding $0.84 per cwt. Lean hog index for 7/28 is at $78.33
down 0.03, with a projected two-day index of $78.51 up 0.18.
Rick Kment can be reached at email@example.com
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