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DTN Midday Livestock Comments 09/10 12:05
Livestock Futures Stuck in Tight Range
Trading ranges have remained narrow through the morning session with traders
focusing on cash and wholesale price developments. There is also moderate
contract positioning in front of the weekend taking place which is limiting
overall market price shifts Friday.
By Rick Kment
DTN Livestock Analyst
GENERAL COMMENTS:
Livestock futures are mixed in a narrow range with traders looking not only
for support from cash markets, but also direction from outside market shifts.
Corn futures are higher following the USDA report. December corn futures are 6
cent higher at midday. Stock markets are mixed in light trade. The Dow Jones is
23 points higher while Nasdaq is down 2 points.
LIVE CATTLE:
Trading ranges have remained narrow through the live cattle complex although
late week support is trickling into the market. December live cattle are
trading at $99.90 per cwt, with most traders seemingly finding a comfort level
between $99 and $100 per cwt. The lack of support in the midday boxed beef
value is adding very little pressure to the market as traders look for
continued aggressive cattle buying over the next couple weeks. Cash trade is
pretty much done for the week with prices steady to $1 higher from last week.
Early asking prices next week are likely to be at $100 per cwt in the South and
$158 in the North. Beef cut-outs at midday are mixed, falling $1.04 per cwt
(select) and gaining 23 cents per cwt (choice) with moderate movement of 272
total loads reported (101 loads of choice cuts, 79 loads of select cuts, 43
loads of trimmings, 48 loads of coarse grinds).
FEEDER CATTLE:
Feeder cattle futures are mixed in a narrow range Friday midmorning. The
continued support in the corn market is having very little affect on feeder
cattle traders with most activity focusing on end of the week positioning. The
light to moderate support in the live market is expected to help draw
additional support into the feeder cattle market through the end of the
session, although trade is expected to remain sluggish.
LEAN HOGS:
Moderate to strong gains were seen early as traders expected additional
support from cash markets. But with Iowa and Minnesota cash prices posting
sharp losses, traders are becoming much more nervous about the continued
support in market fundamentals. October futures are steady after giving back
early gains of 40 cents per cwt. Other deferred contracts have posted moderate
losses due to traders looking not only for fundamental pressure, but some late
week pressure is expected after 2011 have set new contract highs for the last
two sessions in a row. Cash prices are lower at midday on a moderate run of
1,609 head. Prices fell $2.56 per cwt with a weighted average of $80.70. The
trading range is $72.00 to $82.50 per cwt. Fresh pork trade reported four loads
of fresh pork product sold on the midday carlot. Lean hog index for 9/8 is at
$81.86 up 33 with a projected two-day index of $82.47 per cwt, up 61.
PORK BELLIES:
The 14-to-16-pound bellies were untested on the midday carlot report.
Rick Kment can be reached at rick.kment@telventdtn.com
(SK)
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