DTN Midday Livestock Comments 04/24 12:22
Buyers Pull Back From Early Gains
Strong initial support in cattle trade has eroded through late morning with
mixed prices now creating concerns of late-day pressure.
By John Harrington
Mixed trade is seen in live cattle futures at midday as traders continue to
back away from early gains. Hog futures are under additional pressure with
increased market weakness developing in all contracts. Corn prices are higher
in light trade. May corn futures are 1 cent higher. Stock markets are lower in
light trade. The Dow Jones is 389 points lower while Nasdaq is down 106 points.
Mixed trade is seen midday Tuesday with very limited activity seen across
the complex. There is likely to be some additional market activity likely to be
seen. The early gains may help to bring some additional support to the complex,
although trade activity remains light. Cash cattle interest remains extremely
quiet with very limited activity seen through the complex Tuesday morning. Bids
are yet to be established with very light activity seen through the entire
complex. A few asking prices have trickled through the market in the South,
starting near $125 per cwt. But it may be the last half of the week until
significant interest develops. Boxed Beef cut-outs at midday are higher, $0.39
higher (select) and up $1.88 per cwt (choice) with active movement of 81 total
loads reported (42 loads of choice cuts, 24 loads of select cuts, no loads of
trimmings, 15 loads of ground beef).
Strong early support has slowly eroded through the morning, although price
are still trading higher at midday. Contracts are holding a tight trading range
from 10 to 40 cents per cwt higher with underlying support seen from initial
buyer activity. It is possible that additional pressure may soon develop across
the complex as traders look for increased overall movement in the complex. This
could add even more price shifts through midweek.
Moderate pressure continues to develop in lean hog futures with June futures
leading the market lower with a $1 per cwt loss. The overall pressure in the
complex continues to bring additional price softness to all trade with most
contracts 45 to 70 cents lower in light activity. There is growing uncertainty
about the additional market softness and how much follow through pressure will
develop through the week. Cash prices are lower on the National Direct morning
cash hog report. The weighted average price is down $0.03 at $57.70 per cwt
with the range from $53.50 to $58.50 on 3,640 head reported sold. Cash prices
are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted
average price is up $0.12 at $58.10 per cwt with the range from $55.00 to
$58.50 on 1,036 head reported sold. The National Pork Plant Report posted 216
loads selling with carcass values adding $0.58 per cwt. Lean hog index for 4/18
is at $55.97 up 0.92 with a projected two-day index of $56.80, up 0.83.
Rick Kment can be reached at email@example.com
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