DTN Midday Livestock Comments 08/24 12:06
Sharp Losses Redevelop Across Cattle Trade
Aggressive pressure continues to be seen through the livestock market as
triple digit losses are holding across live cattle and feeder cattle trade. The
inability to bring buyers back to the market is likely to add to the already
By Rick Kment
Sharp pressure is seen in cattle trade Wednesday morning with no significant
support coming from either fundamental or technical factors, and causing
traders to quickly liquidate positions. Pressure in lean hog futures has
quickly developed through late morning. Corn prices are lower in light trade.
September corn futures are 1 cent lower. Stock markets are lower in light
trade. The Dow Jones is 10 points lower while Nasdaq is down 4 points.
Sharp losses have continued to develop through live cattle futures with no
sense of short or long term support seen through the market. Uncertainty of
drawing short or long term support is impacting the entire complex, where most
of the pressure over the last couple weeks has been driven by nearby trade
activity, this move seems to have focused on pressure through the 2017
marketing year. Cash cattle markets are still untraded, although bids are more
evident through the complex. Bids of $115 per cwt are redeveloping in the
South, similar to Tuesday's bids, while bids of $183 per cwt are seen in the
North. Asking prices remain at $120 in the South and $190 and higher in the
North. Beef cut-outs at midday are higher $0.88 higher (select) and up $0.21
per cwt (choice) with moderate movement of 90 total loads reported (38 loads of
choice cuts, 18 loads of select cuts, 14 loads of trimmings, 19 loads of ground
Triple-digit losses have quickly developed through most feeder cattle
futures as traders try to find a sense of market support, but so far, there has
been no evidence of additional interest stepping into the market. Front-month
August futures continue to hold a narrow gain based on general market
inactivity, but the sharp triple digit losses through the rest of the complex
have kept any attention away from this narrow support.
Pressure has continued to develop through the lean hog futures complex
during the morning with the inability to spark significant support in either
the cash or meat markets has pulled traders away from taking narrow losses, to
more aggressive pressure through the end of the morning. Losses are holding
from 30 to 60 cents per cwt lower as uncertainty about holding previous market
support continues to sweep through the market. Cash prices are lower on the
National Direct morning cash hog report. The weighted average price fell $1.04
per cwt to $61.70 per cwt with the range from $57.00 to $63.00 per cwt on 6,426
head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning
cash hog report. The weighted average price fell $0.77 per cwt to $62.43 per
cwt with the range from $57.00 to $63.00 per cwt on 2,691 head reported sold.
The National Pork Plant Report reported 214 loads selling with prices gaining
$0.22 per cwt. Lean hog index for 8/22 is at $66.96, down 0.06 with a projected
two-day index of $66.99 up 0.03.
Rick Kment can be reached at firstname.lastname@example.org
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