DTN Midday Livestock Comments 07/17 12:08
Strong Pressure Redevelops Across Hog Futures
Moderate to strong pressure is seen in hog markets early Tuesday. This lack
of support has eroded any initial gains in cattle trade, and allowed feeder
cattle to post moderate to strong losses based partially on strength in grain
By Rick Kment
Strong losses have quickly redeveloped through the lean hog complex Tuesday
morning. The firm pressure in cash hog values has continued to add to the
overall market pressure in the complex. Live cattle futures have remained mixed
through most of the morning, but midday trade is pulling away from early
morning gains. Corn prices are higher in light trade Tuesday. July corn futures
are 6 cents higher. Stock markets are higher in light trade. The Dow Jones is
59 points higher while Nasdaq is up 42 points.
Narrow trading ranges are seen midday Tuesday with the focus on strong gains
in grain and feed markets early in the session. August futures are holding
losses of 32 cents per cwt, while the rest of the complex is stuck between 10
cents lower and 10 cents higher in limited activity. Limited market ranges are
expected to be seen through the rest of the session, keeping markets likely
hovering in a narrow range. Cash cattle interest remains quiet with bids and
asking prices still hard to find in all areas of the country. This may add some
additional uncertainty to the market following the lack of follow-through
support in futures prices and firm beef values. Active trade is not expected
until the last half of the week. Boxed Beef cut-outs at midday are higher,
$1.60 Higher (select) and up $1.24 per cwt (choice) with light movement of 81
total loads reported (57 loads of choice cuts, 16 loads of select cuts, no
loads of trimmings, 8 loads of ground beef).
Light to moderate pressure is slowly trickling into feeder cattle futures.
This is moving prices 10 to 45 cents per cwt lower as limited interest is seen
in live cattle trade following the strong market gains seen Monday. August
futures are leading the complex lower with a 45 cent per cwt loss, as prices
have dipped below $152 per cwt once again. The uncertainty of overall long term
beef demand as well as firm buyer interest in grain trade is eroding trade in
all feeder cattle future.
Moderate to strong pressure is seen through the lean hog complex late
Tuesday morning with October through April futures holding triple-digit losses.
The combination with Monday losses has reactivated concerns that additional
long-term pressure will develop through the entire complex. Cash prices are
lower on the National Direct morning cash hog report. The weighted average
price is down $1.26 at $71.50 per cwt with the range from $70.00 to $72.50 on
6,623 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct
morning cash hog report. The weighted average price is down $1.25 at $71.47 per
cwt with the range from $70.00 to $72.50 on 4,353 head reported sold. The
National Pork Plant Report posted 220 loads selling with carcass values gaining
$1.15 per cwt. Lean hog index for 7/13 is at $80.34 down 0.57 with a projected
two-day index of $79.69, down 0.65.
Rick Kment can be reached at email@example.com
Copyright 2018 DTN/The Progressive Farmer. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.