DTN Midday Livestock Comments 05/02 12:01
Triple-Digit Gains Hold in Cattle Futures
Strong buyer support has quickly developed on the first trading session of
May. The main focus has been seen through cattle futures where triple-digit
gains have developed. Hog prices are holding firm support based on fundamental
By Rick Kment
Triple-digit gains continue to be seen through the cattle market as traders
remain focused on rebounding buyer interest after the first of the month. The
focus in the complex seem to be intent on helping to draw support to summer
contracts. Corn prices are lower. May corn futures are 3 cents lower. Stock
markets are higher in light trade. The Dow Jones is 77 points higher while
Nasdaq is up 11 points.
Live cattle futures moved higher in early trade with the focus on
early-month trade taking over the complex. This has brought about increased
commercial support to the market, brining triple digit gains into all markets.
The interest seems to be focused on trade potential later in the week and the
ability to stabilize the chart long term. Cash cattle markets are quiet with
show list distribution the main focus of the day as bids and asking prices are
still undeveloped. Beef cut-outs at midday are lower, $1.63 lower (select) and
down $0.25 per cwt (choice) with light movement of 45 total loads reported (22
loads of choice cuts, 8 loads of select cuts, no loads of trimmings, 15 loads
of ground beef).
Nearby gains have rebuilt triple-digit gains following a midmorning slump
through the cattle market as buyers continue to focus on stepping back into the
complex after the first of the month. The focus on moving contracts back from
the sharp losses seen over the last couple of weeks is helping to bring
increased market support across the complex.
Light early-month buying support slowly developed through the early morning
hours of trade, as firm support developed was seen following the strength in
the market seen late last week. There continues to be some additional interest
in nearby contracts as the most significant support is seen in June and July
futures contracts based on the combination of cash market and pork value
support expected through the next couple of weeks. Even though meat remains
available for current demand, the seasonal support is keeping buyers active.
Cash prices are lower on the National Direct morning cash hog report. The
weighted average price fell $1.31 per cwt to $67.97 per cwt with the range from
$64.00 to $70.50 per cwt on 2,695 head reported sold. Cash prices lower on the
Iowa Minnesota Direct morning cash hog report. The weighted average price fell
$1.77 per cwt to $68.63 per cwt with the range from $64.00 to $70.50 per cwt on
374 head reported sold. The National Pork Plant Report reported 153 loads
selling with prices up $1.90 per cwt. Lean hog index for 4/28 is at $70.47, up
0.66 with a projected two-day index of $71.11, up 0.64.
Rick Kment can be reached at email@example.com
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