DTN Midday Livestock Comments

Futures Slide Lower Monday Morning

Rick Kment
By  Rick Kment , DTN Analyst
(DTN file photo by Russ Quinn)
General Comments

Early support Monday morning faltered as increased pressure moved into cattle and hog futures. Limited long-term direction is seen as increased traders interest is still adjusting to late-week market shifts. Corn futures are lower in light trade. September corn futures are 3/4 cent lower. Stock markets are lower in light trade. Dow Jones is 125 points lower with NASDAQ down 54 points.

LIVE CATTLE:

Acitve pressure is seen in nearby live cattle trade, although deferred futures still hold narrow gains. The initial buyer support developing Monday morning helped to bring additional underlying support back to the complex, although traders remain focused on pressure in feeder cattle trade Monday morning, and this is putting pressure on summer and winter contract months. Cash cattle markets are quiet with limited movement seen Monday. Asking prices and bids are unavailable and likely to remain that way until Tuesday or later. Most trade is likely to be pushed off until Wednesday or later. Boxed Beef cut-outs at midday are mised, $0.40 higher (select) and down $0.23 per cwt (choice) with light movement of 57 total loads reported (32 loads of choice cuts, 18 loads of select cuts, 8 loads of trimmings, 16 loads of ground beef).

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FEEDER CATTLE:

Feeder cattle trade has slipped lower as early support was unable to hold as increased trade volume moved into the complex. Narrow nearby losses are being offset by moderate to strong pressure in deferred trade. This may spark some additional underlying softness through the entire complex through the end of the session.

LEAN HOGS:

Moderate to strong losses have redeveloped Monday morning as continued softness followed the aggressive pressure that developed late last week. Traders continue to focus on lack of news surrounding China trade, and this will continue to focus on uncertainty through the entire complex. With hog and pork production still expected to increase through the end of the year, traders remain concerned about being able to push prices higher over the near future without stimulating aggressive export trade. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.19 at $65.95 per cwt with the range from $57 to $68 on 6,609 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork values slipped in early week pressure. Pork cutouts fell $0.22 per cwt at $72.95 per cwt with 129 loads traded.

Rick Kment can be reached at rick.kment@dtn.com

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Rick Kment