DTN Midday Livestock Comments 12/10 12:15
Hog Futures Slide Lower
Moderate to strong losses developed early Monday in lean hog trade with the
initial weakness sparking some additional pressure through most of the complex.
Cattle trade is mixed in limited volume.
By Rick Kment
Strong losses have held through lean hog trade with triple digit pressure
seen early in the morning has limited additional buyer activity in most
contract months. Feeder cattle futures are holding moderate to strong gains,
although this is showing only limited support to the live cattle complex. Corn
markets are higher in light trade. March corn futures are 1/4 cent higher.
Stock markets are lower in active trade. Dow Jones is 205 points lower with
Nasdaq down 2 points.
Live cattle futures are mixed in a narrow trading range with very limited
activity seen through the complex. Firm gains in feeder cattle have shown very
limited direction with light to moderate pressure seen in nearby contracts.
This is offset by firming gains seen in the deferred contracts, as pressure in
outside markets is limiting trade interest early Monday. Cash cattle activity
remains silent focusing on show list distribution and inventory taking. It is
likely to be the last half of the week before trade develops, with packer
interest likely delayed until Wednesday. Boxed Beef cut-outs at midday are
higher, $0.30 higher (select) and up $0.83 per cwt (choice) with light movement
of 55 total loads reported (28 loads of choice cuts, 10 loads of select cuts, 2
loads of trimmings, 15 loads of ground beef).
Renewed buyer support has moved back into the feeder cattle futures complex
with firm gains holding through the entire morning. Nearby contracts are
holding 50 to 80 cents per cwt with increased underlying support developing
through the complex. It is expected that trade volume will remain sluggish
through the rest of the session, although current gains are expected to hold.
Firm losses have continued to erode Monday, although losses have backed away
from session lows. There continues to be some additional pressure developing in
all markets. February futures are leading the complex lower with a 90 cent loss
as traders remain focused on increased pressure in all nearby and most deferred
trade. Cash prices are higher on the National Direct morning cash hog report.
The weighted average price is $0.05 higher at $47.89 per cwt with the range
from $45.00 to $48.56 on 4,124 head reported sold. Cash prices are unreported
due to confidentiality on the Iowa/Minnesota Direct morning cash hog report.
Pork carcass values fell $0.64 per cwt at $72.99 per cwt on 152 loads. Lean hog
index for 12/06 is $56.96, down 0.23, with a projected two-day index is $56.12,
Rick Kment can be reached at email@example.com
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