DTN Midday Livestock Comments 01/28 11:23
Hog Futures Surge Higher
The aggressive buying shift has moved from aggressive cattle futures buying
on Tuesday to strong moves higher in the lean hog futures. This has left lean
hog futures at or near limit high gains of $3 per cwt in several contracts at
By Rick Kment
DTN Livestock Analyst
Lean hog futures are holding aggressive gains with several contacts either
at or near limit higher trade of $3 per cwt. The aggressive support is likely
to draw additional interest back into the complex going into the end of the
month. Cattle futures are trading mixed in moderate trading ranges. Corn prices
are lower in light trade. March corn futures are 2 cents per bushel lower.
Stock markets are higher in light trade. The Dow Jones is 60 points higher
while Nasdaq is up 20 points.
Live cattle futures trade remains mixed in a choppy market following
limit-higher trade Tuesday. The lack of aggressive buyer interest in the market
is not overly concerning and is creating needed consistency at the current
price levels. With end of the month nearing at the end of the week, there could
be some additional late-week position taking given the volatility seen over the
last couple of weeks. Cash cattle activity remains relatively quiet with just a
few bids starting to pop up in Nebraska at $249 per cwt. This could easily push
activity into Friday. Asking prices are holding around $162 and higher in the
South and $260 and higher in the North. Beef cut-outs at midday are higher,
$0.46 higher (select) and up $0.33 per cwt (choice) with active movement of 132
total loads reported (67 loads of choice cuts, 32 loads of select cuts, six
loads of trimmings, 27 loads of ground beef).
Buyer support continues to slowly develop through the morning as early mixed
trade in the cattle complex has not been replaced by moderate support through
the entire complex. There is uncertainty as to just how much additional buyer
activity will develop through the end of the week. January futures contracts
are on the last leg, as contracts expire Thursday, but the lack of a strong
premium in front-month futures could help to bring some needed stability to the
Wednesday the lean hog futures market seems to have taken over for the
cattle complex in posting aggressive buyer support through the complex.
Although nearby contracts have been limited to gains below $2 per cwt, deferred
futures are trading at or near limit higher price levels of $3 per cwt. This
support could help to draw additional longer term support back into the
complex. Cash prices are lower on the National Direct morning cash hog report.
The weighted average price fell $0.63 per cwt to $66.59 per cwt with the range
from $56.50 to $68.25 per cwt on 7,761 head reported sold. Cash prices are
lower on the Iowa Minnesota Direct morning cash hog report. The weighted
average price fell $0.09 per cwt to $67.67 per cwt with the range from $56.50
to $68.25 per cwt on 2,550 head reported sold. The National Pork Plant Report
is reported 320 loads selling as prices falling $0.31 per cwt. Lean hog index
for 1/26 is at $72.51 down 0.40, with a projected two-day index of $72.14 down
Rick Kment can be reached at firstname.lastname@example.org
Copyright 2015 DTN/The Progressive Farmer. All rights reserved.
No other Daily email offers as much useful Ag information as DTN Snapshot – Sign up