DTN Midday Livestock Comments 06/18 11:52
Live Cattle Futures Mixed in Narrow Range
The live cattle futures market has bounced higher and lower through the
morning with uncertainty surrounding beef demand as well as choppy outside
markets moves. Lean hog futures are sharply higher at midday.
By Rick Kment
Livestock futures markets are mixed to mostly higher at midday. The
strongest support developed in the front month July lean hog contracts, holding
a $1 per cwt rally. Live cattle futures are mixed in a narrow range. Corn
futures are higher at midday. July corn futures are holding 2 cent gains at
midday. Stock markets are higher in light trade. The Dow Jones is 125 points
higher while Nasdaq is up 28 points.
Price moves through the live cattle complex have bounced higher and lower
through the morning. Front-month June futures are under light pressure while
other nearby and deferred contracts have been able to hold a portion of
previous support. Trade volume is expected to remain light through the complex
through the rest of the session. The lack of support in boxed beef values is
limiting support from the futures complex. Cash cattle activity is dead through
the morning Tuesday with not even a token bid seen through either the North or
the South. Asking prices are around $122 to $123 per cwt in the South and $198
and higher in the North. Beef cut-outs at midday are mixed, $1.16 per cwt
higher (select) and down $0.53 per cwt (choice) with light movement of 104
total loads reported (55 loads of choice cuts, 28 loads of select cuts, 6 loads
of trimmings, 15 loads of ground beef).
Movement through the feeder cattle market is mixed through the morning
following an up and down day in the live cattle market. The light support in
the corn complex early Tuesday is creating some concern through the feeder
cattle market about longer-term production costs. But the main uncertainty
being focused upon in nearby feeder cattle complex is the inability for
midmorning gains to hold through the live cattle market.
Lean hog futures markets have found additional buyer support through late
morning. The activity in the lean hog complex has been centered around July and
August contracts, which are holding 80 to 90 cent gains. This support is based
on renewed expectations of firm to strong pork demand support over the near
future. Cash prices lower on the National Daily Direct morning cash hog report.
The weighted average price fell $0.98 per cwt to $98.51 per cwt with the range
from $95.00 to $100.00 per cwt on 3,424 head reported sold. The National Pork
Plant Report reported 196 loads with prices gaining $1.90 per cwt. Lean hog
index for 6/14 is at $102.49 up 1.23 with a projected two-day index of $103.28
Rick Kment can be reached at firstname.lastname@example.org
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