DTN Midday Livestock Comments 05/27 12:03
Buyer Interest Develops in Livestock Markets
Early pressure has been overshadowed by a strong round of buyer support
quickly jumping into the livestock complex. Triple-digit gains in feeder cattle
futures are helping to draw additional interest back into the complex.
By Rick Kment
Moderate buyer support has quickly redeveloped through the livestock complex
with strong triple-digit gains seen in feeder cattle and helping to bring
additional interest into the complex. Strong nearby gains are seen in the lean
hog futures complex despite the lack of support in cash markets. Corn prices
are lower in light trade. July corn futures are 4 cents per bushel lower. Stock
markets are higher in light trade. The Dow Jones is 104 points higher while
Nasdaq is up 45 points.
Live cattle prices have bounced higher and lower through the morning across
the futures complex as traders continue to focus on balancing short and long
term market needs with expected demand growth. The inability for cattle to
still break out of the current market range is expected to help keep traders
cautious about moving aggressively in either direction. Cash cattle markets
remain quiet, although a few bids are starting to develop in the North and
South at $157 to $158 on a live basis. It is expected that it still may be
Thursday or Friday before active trade develops. Beef cut-outs at midday are
mixed, $0.90 higher (select) and down $0.31 per cwt (choice) with active
movement of 116 total loads reported (58 loads of choice cuts, 25 loads of
select cuts, nine loads of trimmings, 24 loads of ground beef).
Feeder cattle futures have moved back and forth through the morning with
buyers now quickly stepping back into the complex. There is expected to be some
additional support developing over the next couple of hours as the ability to
focus on longer term supply levels seems to be trumping general apathy when it
comes to overall beef clearance and the expectation of future market gains.
Moderate nearby gains are holding across the lean hog futures market with
traders focusing on the potential to bring some stability back into the pork
and cash hog markets through the end of the week. Prices have fallen from early
session highs, but support from renewed midday support in cattle trade may help
to spark traders interest once again. Cash prices are lower on the National
Direct morning cash hog report. The weighted average price fell $1.01 per cwt
to $76.12 per cwt with the range from $69.00.00 to $79.00 per cwt on 2,861 head
reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash
hog report. The weighted average price fell $1.79 per cwt to $77.43 per cwt
with the range from $69.00.00 to $79.00 per cwt on 291 head reported sold. The
National Pork Plant Report reported 236 loads selling with prices falling $0.69
per cwt. Lean hog index for 5/21 is at $83.12 down 0.08, with a projected
two-day index of $82.91 down 0.21.
Rick Kment can be reached at firstname.lastname@example.org
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