DTN Midday Livestock Comments 03/07 12:00
Moderate Gains Hold in Livestock Futures
Light support is holding in livestock futures Friday morning. Traders appear
to be squaring positions in front of the weekend break.
By Rick Kment
Livestock futures are trading higher at midday, despite lackluster interest
in live cattle trade during early morning activity. Hog futures have quickly
slipped from session highs, as traders appear to be squaring positions in front
of the weekend. Corn futures are lower at midday. March corn futures are 6 cent
per bushel lower. Stock markets are mixed in light trade. The Dow Jones is 26
points higher while Nasdaq is down 18 points.
Light gains are holding in live cattle futures following narrow up and down
trade through the rest of the morning. The strong support in both the lean hog
and feeder cattle complex seems to be keeping most nearby traders somewhat
optimistic. But there remains concern about the lack of follow through support
in boxed beef values and softness in cash markets. Traders continue to focus on
April futures, if contracts close below $143 per cwt, additional pressure may
quickly develop early next week. Cash cattle markets remain quiet following the
light to moderate trade Thursday. There still is expected to be some additional
movement before both sides of the market call it quits but it may be late to
develop. Bids of $146 are seen in the South while $235 to $237 is holding in
the North. Asking prices remain at $148 to $150 per cwt in the South and $238
and higher in the North. Beef cut-outs at midday are higher, $0.27 per cwt
higher (select) and up $1.30 per cwt (choice) with light movement of 49 total
loads reported (29 loads of choice cuts, eight loads of select cuts, seven
loads of trimmings, five loads of ground beef).
Feeder cattle futures continue to draw light to moderate buyer support
through the end of the week. March futures are posting 72 cent gains during
Friday morning, which resembles the support through the rest of the nearby
contracts. Traders are still looking at firming buyer interest although
fundamental market support has been unwilling to show significant gains late in
Strong gains continue to develop through the lean hog futures, although
nearby contracts have backed away from session highs seen earlier in the
morning. April contracts are holding 85-cent-per-cwt gains through early trade
with buyers focusing on firm support in the June contract above $120 per cwt.
June futures continue to be leading the market higher, posting a weekly gain of
$8.25 per cwt so far. Cash prices unreported on the National Direct morning
cash hog report. Cash prices are unreported due to confidentiality on the Iowa
Minnesota Direct morning cash hog report. The National Pork Plant Report
reported 134 loads with prices gaining $0.95 per cwt. Lean hog index for 3/5 is
at $102.63 up 1.44, with a projected two-day index of $103.63 up 1.32.
Rick Kment can be reached at firstname.lastname@example.org
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