DTN Midday Livestock Comments 01/23 12:12
Firm Gains Redevelop in Feeder Cattle Futures
Moderate to strong support has entered the market as traders shake off early
pressure. The buyer interest may help to bring about increased market activity
By Rick Kment
Livestock futures are mixed midday Tuesday. The support in cattle markets
have shaken off early trade pressure and the ability to push triple digit gains
in nearby feeder cattle contracts is adding underlying support to all
contracts. Corn prices are lower in light trade. March corn futures are 2 cents
lower Tuesday. Stock markets are mixed in light trade. The Dow Jones is 6
points lower while Nasdaq is up 24 points.
Light to moderate buyer support is stepping into the live cattle complex.
This is building on the gains which quickly developed Monday, and allowing
prices to firm although most traders are taking a much less aggressive approach
to the market. There is likely to be some additional market trade activity
through the middle of the week in nearby live cattle futures. Cash cattle
markets are quiet with bids undeveloped at this point of the week. There is
likely to be very little interest shown before midweek and active trade is
expected to be pushed to Thursday or Friday. Boxed Beef cut-outs at midday are
higher, $0.34 higher (select) and up $1.37 per cwt (choice) with light movement
of 59 total loads reported (21 loads of choice cuts, 22 loads of select cuts,
8 loads of trimmings, 7 loads of ground beef).
Feeder cattle futures have posted moderate to strong support across the
market. This is helping to push prices higher, and build on the support seen
Monday. Nearby contracts are holding a triple-digit gain. The overall support
across the market continues to draw buyer support through the complex as
traders look for increased movement over the end of the week.
Narrow trading ranges are seen through with prices mixed in the narrow
range. Front month futures are seen 50 cents per cwt higher while the rest of
the complex is holding losses of 10 to 50 cents per cwt. There is likely to be
some additional longer term weakness across the market following the overall
softness in ash markets. There is additional movement expected through the end
of the session, although traders are likely to keep prices in the current
range. Cash prices are higher on the National Direct morning cash hog report.
The weighted average price is up $0.19 at $69.47 per cwt with the range from
$62.00 to $70.00 on 4,317 head reported sold. Cash prices are lower on the
Iowa/Minnesota Direct morning cash hog report. The weighted average price is
down $0.38 at $69.25 per cwt with the range from $62.00 to $70.00 on 1,380 head
reported sold. The National Pork Plant Report posted 185 loads selling with
carcass values adding $1.21 per cwt. Lean hog index for 1/19 is at $73.40 down
$0.27 with a projected two-day index of $73.39, down $0.01.
Rick Kment can be reached at firstname.lastname@example.org
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