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DTN Midday Livestock Comments          01/26 12:27

   Feeder Cattle Futures Hold Aggressive Losses

   The inability to draw support from the bullish cattle on feed report has 
sparked sharp expanded losses in feeder cattle trade. Even though cattle 
markets remain under pressure, nearby contracts have backed off of session lows.

By Rick Kment
DTN Livestock Analyst



GENERAL COMMENTS: 

   Aggressive pressure continues to hold in feeder cattle futures. There may be 
continued buyers stepping back into the market. But the lack of activity at 
midday could create some additional softness through the market. Corn prices 
are lower in light trade. March corn futures are 2 cents per bushel lower. 
Stock markets are mixed in light trade. The Dow Jones is 6 points lower while 
Nasdaq is up 3 points.

   LIVE CATTLE:

   Live cattle futures remain under pressure, although the focus on aggressive 
triple-digit losses seems to have eased at midday. Traders are looking for 
additional support from outside markets, but if selling activity slows, the 
potential for late-day short covering may continue to spark additional 
interest. Cash cattle activity is quiet with bids and offers undeveloped. Show 
lists are generally mixed in an odd mixture of moves as Nebraska is showing 
moderately lower offerings for the week. It is uncertain just how active trade 
will be early in the week given the defensiveness of the market. Beef cut-outs 
at midday are lower, $1.20 lower (select) and down $1.65 per cwt (choice) with 
light movement of 73 total loads reported (40 loads of choice cuts, 10 loads of 
select cuts, 10 loads of trimmings, 14 loads of ground beef).

   FEEDER CATTLE:

   Feeder cattle futures have taken advantage of expanded trading limits 
despite pulling back away from the session lows. There is expected to be 
additional softness through the rest of the session, although it is uncertain 
just how much buying activity will remain through the complex through the end 
of the session. 

   LEAN HOGS:

   Strong early-week gains have continued to quickly develop through the lean 
hog futures market. The aggressive pressure in the cattle market seems to be 
the main draw to traders who are looking for a place to park investments for 
the short term. Cash prices are unreported on confidentiality on the Iowa 
Minnesota Direct morning cash hog report. The National Pork Plant Report is 
reported 132 loads selling as prices adding $1.38 per cwt. Lean hog index for 
1/22 is at $73.57 down 0.54, with a projected two-day index of $72.91 down 
0.66.  

   Rick Kment can be reached at rick.kment@dtn.com 


(SK)

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