DTN Midday Livestock Comments 10/08 12:04
Strong Buyer Support Surfaces Midday
Cattle futures have moved higher Thursday morning as early morning pressure
has been quickly replaced by moderate to strong buyer support. Hog futures
remain moderately mixed following firming pork prices in morning cutout
By Rick Kment
Early market pressure through cattle and hog futures has slowly backed out
of the market, allowing for moderate to strong buyer support to redevelop.
Feeder cattle futures are holding gains near $2 per cwt in front month October
futures while nearby live cattle contracts are on either side of $1 per cwt
higher. Hog futures have backed away from early losses, although narrow nearby
gains are being offset by continued deferred market pressure. Corn prices are
lower in light trade. December corn futures are 3 cents per bushel lower. Stock
markets are mixed in light trade. The Dow Jones is 31 points higher while
Nasdaq is down 31 points.
Narrow to moderate losses held through most of the morning in live cattle
futures, but increased buyer interest stepped back into the market with October
futures trading $1 per cwt higher. The rest of the live cattle complex remains
moderately higher based on the expectation that beef values will continue to
bounce higher and eventually pull cash cattle prices higher. Cash cattle
activity remains dead in the water with just a few bids seen Thursday around
$118 in the South and $182 in the North. Both sides seem to be unwilling to
aggressively point to any market movement at this point, as they wait for
additional direction from futures trade. Asking prices are hovering around $128
in the South and $203 and higher in the North. Beef cut-outs at midday are
higher, $0.30 higher (select) and up $1.39 per cwt (choice) with active
movement of 147 total loads reported (65 loads of choice cuts, 34 loads of
select cuts, 7 loads of trimmings, 40 loads of ground beef).
Strong triple-digit gains have developed midday in feeder cattle futures
with front month October contracts holding the most significant rally at $1.80
per cwt. The bullishness seen over the past two trading sessions has quickly
been redeveloped through feeder cattle futures even though fundamental support
has yet to be seen.
Light buyer support has trickled back into the complex Thursday late morning
following renewed buyer support in the cattle complex. Although gains remain
light through most of the morning, the ability to hold prices at this level
could spark additional interest late in the week. Cash prices are lower on the
National Direct morning cash hog report. The weighted average price fell $1.26
per cwt to $69.94 per cwt with the range from $63.00 to $72.00 per cwt on 6,491
head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning
cash hog report. The weighted average price fell $1.27 per cwt to $71.63 per
cwt with the range from $63.00 to $72.00 per cwt on 656 head reported sold. The
National Pork Plant Report reported 196 loads selling with prices up $2.02 per
cwt. Lean hog index for 10/5 is at $73.75 up 0.37, with a projected two-day
index of $74.29, up 0.54.
Rick Kment can be reached at email@example.com
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