DTN Midday Livestock Comments 10/17 12:01
Limited Buying Interest Adds Pressure to Lean Hog Futures
Lean hog futures have eroded through the morning with traders quickly
backing away from strong early gains, now posting 80 cent losses in spot month
contracts. Nearby gains are holding in cattle futures. This is creating some
stability through the market Tuesday.
By Rick Kment
Livestock futures remain mixed at midday as firm gains have steadily
developed through the live cattle complex. This has limited trade volume
through the morning. Early support in lean hog trade has pulled buyers back
from the market as nearby futures are now holding moderate to firm losses. Corn
prices are steady to lower in light trade. December corn futures are steady.
Stock markets are mixed in light trade. The Dow Jones is 17 points higher while
Nasdaq is down 3 point.
Strong gains have developed in October live cattle futures with traders
focusing on firm commercial interest stepping back into the nearby contracts.
All nearby futures have broken away from the early mixed trade seen across the
complex with prices able to draw additional momentum Tuesday on the expectation
that additional fundamental support will continue to develop over the next
couple of weeks. Cash cattle markets are undeveloped early Tuesday with bids
and asking prices generally hard to pin down at this point. It is expected that
asking prices will start out $113 to $114 live basis and around $178 per cwt.
It will likely be Thursday or Friday before active trade develops in most
areas. Beef cut-outs at midday are lower, $0.75 higher (select) and up $0.30
per cwt (choice) with light movement of 68 total loads reported (30 loads of
choice cuts, 13 loads of select cuts, 13 loads of trimmings, 12 loads of ground
Feeder cattle futures are trading in a directionless market range with very
little activity seen across the complex. The overall lack of movement in the
complex has created very little incentive for traders to move in either
direction. Prices are hovering from 15 cents per cwt lower to 12 cents cwt
higher as traders look for direction from both the live cattle market as well
as outside markets Tuesday morning.
Moderate pressure has quickly developed across the lean hog futures trade
with traders focusing on nearby contracts 30 to 80 cents per cwt lower. This is
a significant shift from the strong morning rally seen in the first hour of
trade. The focus across the market continues to draw buyers back into the
complex, which may help to stabilize prices in deferred contracts. Cash prices
are higher on the National Direct morning cash hog report. The weighted average
price higher $0.54 at $58.91 per cwt with the range from $53.00 to $61.50 on
5,419 head reported sold. Cash prices higher on the Iowa/Minnesota Direct
morning cash hog report. The weighted average price added $1.36 at $61.02 per
cwt with the range from $58.00 to $61.02 on 2,253 head reported sold. The
National Pork Plant Report reported 204 loads selling with prices falling $0.70
per cwt. Lean hog index for 10/13 is at $60.24 up $0.73 with a projected
two-day index of $61.00, up 0.76.
Rick Kment can be reached at firstname.lastname@example.org
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.
No other Daily email offers as much useful Ag information as DTN Snapshot – Sign up