DTN Midday Livestock Comments 10/19 12:02
Firm Pressure Sweeps Through Cattle Trade
Cattle futures have shifted lower through the morning Friday. This is
creating additional weakness through the entire complex.
By Rick Kment
Firm pressure has continued to develop through the morning with overall lack
of support seen midday Friday. Cattle futures continue to hold the most
significant pressure with triple-digit losses seen in deferred feeder cattle
trade. Corn markets are lower in light trade. December corn futures are 2 cents
lower. Stock markets are mixed in light trade. The Dow Jones is 43 points
higher while Nasdaq is down 28 points.
Light to moderate pressure is seen in live cattle futures with traders
pulling away from the narrow trading ranges seen early Friday morning. October
futures are leading the complex lower with a 70 cent loss, although prices are
still able to hold price levels above $112 per cwt. This may add some
end-of-week pressure to the entire complex. Cash cattle trade is still
undeveloped with live bids seen all areas as bids are $111 per cwt. These bids
are fully steady with sales seen earlier in the week. Trade in the south is
expected to develop through the end of the day, but activity may be done for
the week. Boxed Beef cut-outs at midday are higher, $1.51 higher (select) and
up $1.40 per cwt (choice) with moderate movement of 74 total loads reported (27
loads of choice cuts, 13 loads of select cuts, 17 loads of trimmings, 16 loads
of ground beef).
Additional price pressure has swept through the feeder cattle complex with
deferred contracts holding a triple-digit loss. This may add some additional
weakness through the entire complex as follow through pressure may continue
early next week. October futures are holding a 50 cent loss, following very
limited movement in nearby contracts.
Limited trade is seen through lean hog futures complex with front-month
contracts holding a 55 cent per cwt gain, as traders focus on trying to build
some stability back into the market through the end of the week. All other
contracts are holding narrow losses with very limited moves seen at midday.
Very little market information is expected to be seen through the end of the
session. Cash prices are unreported due to confidentiality on the
Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report
posted 127 loads selling on the morning report. Pork carcass values added $1.02
per cwt at $79.14 per cwt. Lean hog index for 10/16 is at $68.17 down 0.42 with
a projected two-day index of 67.76, down 0.41.
Rick Kment can be reached at firstname.lastname@example.org
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