DTN Midday Livestock Comments 12/05 11:57
Livestock Futures Post Additional Losses
Moderate to strong losses are seen in both lean hog and live cattle futures
Thursday morning. Lack of fundamental support through the complex combined with
widespread commercial liquidation is directing the market lower.
By Rick Kment
Market pressure has been evident Thursday with both live cattle and lean hog
futures posting moderate to sharp losses through late morning. Little
additional direction is expected before the end of the session which may help
to draw buyers back to the market. Corn futures are higher at midday. December
corn futures are 1 cent per bushel higher. Stock markets are mixed in light
trade. The Dow Jones is 23 points lower while Nasdaq is up 3 points.
Early mixed prices have seen strong and aggressive losses through most of
the morning. The pressure developing in lean hog futures and lack of
confirmation of widespread beef values is creating moderate to active
liquidation Thursday. February futures are leading the market lower, posting a
97 cent per cwt loss. This lack of support through the complex may create
uncertainty through the end of the week. Cash cattle activity is starting to
develop through the South midday Thursday. Prices are seen at $132 in the South
which is steady with last week. Current offerings in the north are at $208 to
$209. Asking prices remain at $134 to $135 in the South on cattle not yet sold
and $212 and higher in the North. Beef cut-outs at midday are mixed, $1.15 per
cwt higher (select) and down $0.58 per cwt (choice) with light movement of 71
total loads reported (37 loads of choice cuts, 14 loads of select cuts, 5 loads
of trimmings, 16 loads of ground beef).
Early support in feeder cattle contracts has evaporated as corn markets have
moved to positive territory. Nearby contracts are holding losses of 5 to 35
cents per cwt with additional pressure possible following the weakness
developing in live cattle futures. The moves in livestock futures are less
based on fundamental changes in the market and more the lack of renewed
interest as the trading session continues.
Additional pressure continues to hold through lean hog futures markets. The
lack of support in both cash and wholesale pork values in morning reports is
adding to the already limited interest seen in the futures market. Trade is
likely to remain light to moderate through the end of the session, although
pressure is likely to continue to develop over the near future. Cash prices are
lower on the National Direct morning cash hog report. The weighted average
price fell $0.77 per cwt to $78.90 per cwt with the range from $67.00 to $80.00
per cwt on 4,091 head reported sold. Cash prices are lower on the Iowa
Minnesota Direct morning cash hog report. The weighted average price fell $1.40
per cwt to $77.38 per cwt with the range from $77.25 to $77.38 per cwt on 850
head reported sold. The National Pork Plant Report reported 258 loads with
prices slipping $0.34 per cwt. Lean hog index for 12/03 is at 82.69 up 0.44,
with a projected two-day index of $82.91 up 0.22.
Rick Kment can be reached at firstname.lastname@example.org
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