DTN Midday Livestock Comments 01/18 11:38
Firm Gains Redevelop in Cattle Trade
Increased buyer support has continued to develop across the live cattle and
feeder cattle markets. This is helping to bring underlying support to the
By Rick Kment
Prices have moved higher in all livestock trade as follow through support in
the cattle complex is leading the entire market higher. There is growing
support through the rest of the market although traders continue to be very
focused on the development in cash cattle trade through the end of the week.
Corn prices are lower in light trade. March corn futures are 1 cent lower
Thursday. Stock markets are mixed in light trade. The Dow Jones is 95 points
lower while Nasdaq is up 3 points.
Firm gains have held through the morning with nearby contracts holding
support of 80 to 95 cents per cwt. The aggressive moves seen Wednesday has
helped to bring buyers back to the table, although the overall tone of the
market remains much less aggressive Thursday morning. There is the potential to
bring some additional late day buyer support back into the market which could
push prices to triple digit gains before closing bell. Cash cattle markets have
shown some increased bidding activity through the morning with bids developing
at $118 live basis, and $189 to $190 dressed. It may be Friday before active
trade is seen. Asking prices are seen at $124 and higher live and $195 to $197
dressed basis. Boxed Beef cut-outs at midday are higher, $1.38 higher (select)
and up $0.34 per cwt (choice) with light movement of 95 total loads reported
(57 loads of choice cuts, 30 loads of select cuts, no loads of trimmings, 9
loads of ground beef).
Triple-digit gains have developed in front month futures as feeder cattle
markets are still trying to assess the aggressive moves seen Wednesday. The
underlying tone of the market remains firm with all nearby contracts holding
gains of 90 cents to $1.10 per cwt at midday. The potential to draw buyers more
aggressively back into the complex through the end of the session may add to
the underlying market moves.
Narrow gains have been seen across the entire lean hog futures complex with
markets seen steady to 10 cents higher in most contracts. This is allowing for
some sluggish market activity to be seen through the entire complex. Increased
buyer support may step into the market in the last couple hours of trade,
although traders seem to be focusing on limited volume through the end of the
week. Cash prices are lower on the National Direct morning cash hog report. The
weighted average price is down $0.35 at $69.35 per cwt with the range from
$62.00 to $70.50 on 4,138 head reported sold. Cash prices are lower on the
Iowa/Minnesota Direct morning cash hog report. The weighted average price is
down $1.33 at $68.39 per cwt with the range from $62.00 to $70.50 on 1,585 head
reported sold. The National Pork Plant Report posted 131 loads selling with
carcass values falling $0.09 per cwt. Lean hog index for 1/16 is at $72.99 up
$1.07 with a projected two-day index of $73.55, up $0.56.
Rick Kment can be reached at email@example.com
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