Limited trade has trickled into the livestock complex with mixed trade seen through the morning. There is very limited direction in any commodity markets and sluggish interest in livestock trade is adding to this market apathy. Corn markets are steady in light trade activity. September corn futures are steady. Stock markets are mixed in light trade. Dow Jones is 26 points lower while Nasdaq is up 10 points.
Increased support may continue to trickle into live cattle trade during the rest of the session. Narrow gains seen through the morning are able to hold, but the focus on prices 10 to 20 cents per cwt in most contracts seems to be unable to bring additional trade activity back to the table. Cash cattle markets are quiet with show list distribution and inventory taking seen during the day. Bids and asking prices are not expected to be seen until midweek or so, with active trade likely developing in the second half of the week. Boxed Beef cut-outs at midday are mixed, $2.35 higher (select) and down $0.13 per cwt (choice) with light movement of 59 total loads reported (23 loads of choice cuts, 14 loads of select cuts, 10 loads of trimmings, 13 loads of ground beef).
Light pressure has continued to be seen through the morning in nearby feeder cattle futures. This is being offset by narrow gains seen in 2019 contract months with traders focusing on long term market support in the next year. Traders are holding prices in a narrow trading range with very little market premium seen through the entire complex. This could keep feeder cattle prices generally stable over the near future, with limited direction likely Monday afternoon.
Limited trade volume is seen Monday morning with front-month October futures able to hold onto triple-digit gains despite mixed activity thought he rest of the complex. October futures are trading $1.22 per cwt higher at midday, although limited interest is seen through the rest of the complex as traders are finding it challenging to initiate buying interest following the weekend. Markets are expected to hover in the current range with very limited interest seen through the complex. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is $1.68 higher at $44.38 per cwt with the range from $38.00 to $45.00 on 1,991 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $0.72 higher at $42.12 per cwt with the range from $38.00 to $45.00 on 5,390 head reported sold. The National Pork Plant Report posted 128 loads selling on the morning report. Pork carcass values added $0.57 per cwt at $69.13 per cwt. Lean hog index for 9/5 is at $45.92 up 0.25 with a projected two-day index of $46.01, up 0.09.
Rick Kment can be reached at email@example.com
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