DTN Midday Livestock Comments 03/10 11:50
Lean Hog Futures Rally Higher
Sharp gains continue to develop in hog futures with trade at or nearing
daily trading limits through the morning. Cattle futures are trading higher
based on spillover support from lean hog futures as well as pressure in grain
By Rick Kment
Sharp gains have continued to quickly develop through lean hog futures. The
focus continues to be based on concerns of tight hog and pork supplies through
the spring and summer months. This could continue to draw additional interest
into the entire livestock market. Corn futures are lower at midday. March corn
futures are 4 cent per bushel lower. Stock markets are lower in light trade.
The Dow Jones is 70 points lower while Nasdaq is down 11 points.
Live cattle futures have bounced higher and lower through the morning with
traders focusing on additional beef value gains early in the week. Strong gains
in the lean hog futures market continues to be the driver through morning
trade, although April contracts are unchanged at midday. Other contracts are
holding 20-to-40-cent-per-cwt gains at midday although trade volume remains
light. Cash cattle markets are undeveloped at his point Monday morning with
bids and asking prices still hard to find. Beef cut-outs at midday are higher,
$1.95 per cwt higher (select) and up $1.72 per cwt (choice) with light movement
of 63 total loads reported (30 loads of choice cuts, 11 loads of select cuts,
eight loads of trimmings, 14 loads of ground beef).
Light gains early in the session sparked additional interest near midday
following continued pressure in the corn market. This could help draw
additional interest into nearby and deferred feeder cattle futures. April
through September futures are trading $1 to $2 per cwt higher at midday with
the expectation that additional support seen in boxed beef values, and pressure
in grain markets could help to sustain additional growth through the end of the
Lean hog futures are at or near limit higher trade of $3 per cwt at midday
following strong support in pork values in the morning report and additional
focus on tight hog and pork supplies through the spring and summer. April lean
hog futures are trading $2.97 cents per cwt higher at $115.87 per cwt. June
contracts are locked in limit higher trade with prices at $123.50 per cwt. Cash
prices are lower on the National Direct morning cash hog report. The weighted
average price fell $1.93 per cwt to $104.05 per cwt with the range from $98.00
to $107.00 per cwt on 3,305 head reported sold. Cash prices are lower on the
Iowa Minnesota Direct morning cash hog report. The weighted average price fell
$3.15 per cwt to $104.14 per cwt with the range from $98.00 to $107.00 per cwt
on 555 head reported sold. The National Pork Plant Report reported 119 loads
with prices gaining $1.60 per cwt. Lean hog index for 3/6 is at $103.63 up
1.32, with a projected two-day index of $104.73 up 1.10.
Rick Kment can be reached at email@example.com
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