DTN Midday Livestock Comments 06/24 12:04
Cattle Futures Hold Triple-Digit Losses at Midday
Sharp losses are seen through the live and feeder cattle futures at midday
based on widespread and aggressive losses in nearly all other outside markets.
Concern over economic stability around the world has continued to drive selling
pressure into the market.
By Rick Kment
Outside market pressure is driving the livestock markets lower Friday
morning with cattle futures holding triple-digit losses. There may be some
additional softness in late-day trade. Lean hog futures are lower, but with
limited pressure in nearby contracts. Corn prices are lower. July corn futures
are down 7 cents. Stock markets are lower in light trade. The Dow Jones is 518
points lower while Nasdaq is down 180 points.
Live cattle futures are following the direction of outside markets as
triple-digit losses continue to hold across the complex. Concern about how
global economies will react over the coming weeks and months to the UK leaving
the EU and also the availability of money in commodity markets is keeping
traders unwilling to buy. Cash cattle activity is still generally light with
bids at $116 in the South and $184 to $186 per cwt in the North. Moderate trade
developed through the week, which will likely limit any additional trade
through the end of the week in the South, although more Northern Trade is still
needed. Beef cut-outs at midday are mixed $0.04 higher (select) and down $1.46
per cwt (choice) with light movement of 78 total loads reported (54 loads of
choice cuts, 15 loads of select cuts, no loads of trimmings, 9 loads of ground
Feeder cattle futures remain under sharp pressure following the lack of
support in outside markets. August futures are leading the market lower with a
$2.10 per cwt loss. Even though prices have bounced off of early lows, the lack
of support in the market is evident, likely keeping losses near $2 per cwt
through the end of the session.
Activity has been extremely light with prices moving very little through the
morning. The overall lack of direction through the lean hog market in
front-month futures has kept losses narrow, currently down 22 cents per cwt.
Deferred futures are most heavily impacted by outside market pressure. Cash
prices are lower on the National Direct morning cash hog report. The weighted
average price fell $1.03 per cwt to $80.27 per cwt with the range from $79.72
to $82.50 per cwt on 2,475 head reported sold. Cash prices are unreported due
to confidentiality on the Iowa Minnesota Direct morning cash hog report. The
National Pork Plant Report reported 130 loads selling with prices unchanged per
cwt. Lean hog index for 6/21 is at $83.51, up 0.38 with a projected two-day
index of $84.02 up 0.51.
Rick Kment can be reached at email@example.com
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