DTN Midday Livestock Comments 12/11 12:02
Feeder Cattle Markets Rally Higher Midday
Strong pressure seen in livestock markets has been replaced by firm gains in
feeder cattle trade at midday. This may help to bring additional market support
back to the complex through the end of the session.
By Rick Kment
Feeder cattle futures have quickly moved higher as buyers move into the
complex. The ability to replace the early morning pressure is creating some
market attention, although it is uncertain the gains will stick. Strong
triple-digit pressure has developed in lean hog futures as markets turn sour
Monday. Corn prices are lower in light trade. March corn futures are 4 cents
per bushel lower. Stock markets are higher in light trade. The Dow Jones is 34
points higher while Nasdaq is up 36 points.
Mixed trade is seen through live cattle futures with the surge in feeder
cattle prices allowing for a few buyers to slowly step back into the market and
replace early price pressure. It is uncertain if the narrow gains will hold or
if additional buyer support will trickle back into the market. Cash cattle
markets are undeveloped with bids and asking prices unavailable at this point.
It is likely to be midweek or later before active interest moves into the
market. Beef cut-outs at midday are mixed, $0.14 lower (select) and up $0.34
per cwt (choice) with light movement of 35 total loads reported (20 loads of
choice cuts, 9 loads of select cuts, no loads of trimmings, 6 loads of ground
Feeder cattle futures have rallied at midday following dismal market
direction early in the session. Nothing significant has changed through the
morning, but seller interest slowly ran out of gas, allowing for buyers to
flood the market and fill the vacuum. This could quickly change through the end
of the session as buyer depth appears to be thin and may not hold through the
end of the session.
Sharp losses have swept through lean hog futures trade as the focus on
increased market losses in all nearby contracts. There continues to be
uncertainty about the ability to regain market support over the near future
given pressure in cash markets and overall lack of early market support in the
rest of the cattle trade. Cash prices are lower on the National Direct morning
cash hog report. The weighted average price is down $0.21 at $58.99 per cwt
with the range from $53 to $60 on 5,899 head reported sold. Cash prices are
lower on the Iowa/Minnesota Direct morning cash hog report. The weighted
average price fell $0.20 at $59.30 per cwt with the range from $53 to $60 on
2,684 head reported sold. The National Pork Plant Report posted 133 loads
selling with carcass values gaining $0.05 per cwt. Lean hog index for 12/07 is
at $65.48 up $0.18 with a projected two-day index of $65.17, down $0.31.
Rick Kment can be reached at email@example.com
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