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DTN Midday Livestock Comments 12/18 12:24
Cattle Trade Post Gains
Strong market support is redeveloping in cattle futures even though the
complex remains lightly traded. Hog futures are still under pressure with
front-month February contracts leading the market lower.
By Rick Kment
DTN Analyst
General Comments
Strong gains in cattle futures are offsetting the pressure in lean hog trade
Tuesday morning. Little long-term direction is seen through the complex as
traders look for increased market direction later in the week. Corn markets are
higher in light trade. March corn futures are 1 1/4 cent higher. Stock markets
are higher in light trade. Dow Jones is 284 points higher with Nasdaq up 84
points.
LIVE CATTLE:
Strong underlying support is seen through nearby live cattle trade. This is
posting triple-digit gains in all nearby contracts. With December markets
holding a $1 per cwt. This has helped to bring additional support through the
complex. Cash cattle markets remain quiet with bids and offers still
undeveloped. Active trade is not expected to be seen until the end of the week.
Boxed Beef cut-outs at midday are higher, $1.40 higher (select) and up $1.06
per cwt (choice) with light movement of 48 total loads reported (24 loads of
choice cuts, 8 loads of select cuts, 6 loads of trimmings, 9 loads of ground
beef).
FEEDER CATTLE:
Sharp gains have quickly developed in feeder cattle trade. The sharp losses
seen Monday have quickly allowed short covering to develop early in the
session. This has led to additional market interest, which quickly turned, into
triple-digit gains. Traders are looking for increased market stability with
January futures holding a $1.20 per gain, trading at $146.57 at midday.
LEAN HOGS:
Strong losses have continued to develop through all nearby contracts with
February futures holding $1.25 per cwt loss. There continues to be some
additional underlying pressure in all contracts. Cash prices are higher on the
National Direct morning cash hog report. The weighted average price is $0.54
higher at $46.76 per cwt with the range from $41.00 to $47.16 on 4,022 head
reported sold. Cash prices are unreported due to confidentiality on the
Iowa/Minnesota Direct morning cash hog report. Pork carcass values added $2.35
per cwt at $74.31 per cwt on 174 loads. Lean hog index for 12/14 is $55.13,
down 0.04, with a projected two-day index is $55.07, down 0.06.
Rick Kment can be reached at rick.kment@dtn.com
(CZ)
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