DTN Midday Livestock Comments 07/31 12:09
Strong Pressure Develops in Livestock Futures Friday
Moderate to aggressive pressure is seen through the livestock market at
midday as traders focus on end of the month positioning and uncertainty in cash
By Rick Kment
Widespread pressure is seen through the livestock market as traders focus on
increased trade activity at the end of the month. This could spark increased
pressure before the end of the session. Corn prices are lower in light trade.
September corn futures are 4 cents per bushel higher. Stock markets are mixed
in light trade. The Dow Jones is 7 points lower while Nasdaq is up 12 points.
Sharp live cattle futures have developed with the exception of front-month
August futures which are holding a 47 cent per cwt gain in light trade. The
lack of support through the rest of the market is based on end of the month
positioning before traders walk out the door and close the book on the month of
July. Cash cattle trade is undeveloped midday Friday, although bids are
becoming more evident as prices in the South are at $143 per cwt, while dressed
bids in the North are seen at $230 per cwt. Asking prices remain near $148 in
the South and $236 and higher in the North. Beef cut-outs at midday are mixed,
0.37 higher (select) and down 0.07 per cwt (choice) with light movement of 71
total loads reported (35 loads of choice cuts, 11 loads of select cuts, 4 loads
of trimmings, 21 loads of ground beef).
Feeder cattle futures have slipped lower through the morning as traders
continue to look for additional direction as traders exit the market for the
month of July. The ability to draw buyers back into the market at the end of
the week is extremely limited adding to the uncertainty about additional market
support over the near future.
Sharp losses continue to develop Friday as traders continue to back away
from the complex in what is expected to be some additional market pressure
before the end of the month. Trade volume is likely to remain sluggish, which
could add to the aggressive price pressure. Cash prices are lower on the
National Direct morning cash hog report. The weighted average price fell $1.30
per cwt to $73.27 per cwt with the range from $65.00 to $76.00 per cwt on 2,853
head reported sold. Cash prices do not have a comparison due to lack of trade
Thursday on the Iowa Minnesota Direct morning cash hog report. The National
Pork Plant Report reported 103 loads selling with prices falling $0.85 per cwt.
Lean hog index for 7/28 is at $78.33 down 0.03, with a projected two-day index
of $78.51 up 0.18.
Rick Kment can be reached at firstname.lastname@example.org
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