DTN Midday Livestock Comments 10/24 12:14
Cattle Futures Holding Triple-Digit Gains Monday
Aggressive triple-digit gains holding at midday following bullish cattle on
feed report Friday moving buyers back into the market. Trade volume is sluggish
in most areas, although price levels remain firm.
By Rick Kment
Strong buyer support is holding across cattle trade as bullishness from the
cattle on feed report helped to spark increased support in the live cattle and
feeder cattle markets. Triple-digit gains are holding since prices surged
higher at opening bell, although additional support has been hard to find
through most of the day with very little increased volume stepping into the
market. Corn prices are lower in light trade. December corn futures are 4 cents
lower per bushel. Stock markets are higher in light trade. The Dow Jones is 66
points higher while Nasdaq is up 41 points.
Sharp gains are holding Monday morning in live cattle futures with nearby
futures holding gains of $2.20 to $2.50 per cwt based on tighter supplies of
cattle in feedlots. The expectation that supplies are increasing may continue
to keep buyers active through the session and may bring about additional
support through the next couple of trading session. Cash cattle markets are
quiet early Monday morning although the focus is currently on the aggressive
gains in futures trade following the strong support in the cattle on feed
report seen Friday afternoon. Beef cut-outs at midday are mixed $0.26 lower
(select) and up $1.18 per cwt (choice) with light movement of 64 total loads
reported (34 loads of choice cuts, 13 loads of select cuts, 1 load of
trimmings, 16 loads of ground beef).
October feeder cattle futures have posted a narrow gain with 47 cent gains
as traders are focusing on more aggressive support in deferred contracts. The
support is seen in November and January contracts with gains in these contracts
holding $2.80 to $3 per cwt midday as the support seen from sharply lower than
expected cattle placements in the October 1 cattle on feed report is helping to
draw buyer support back into the market.
Follow through support has quickly moved into front month December lean hog
futures with support seen in the cattle market holding through the morning and
able to spill over to the hog complex. The ability to sustain price levels over
$43 per cwt in front-month lean hog futures could spark additional buying
interest over the near future and bring about more long-term buying activity in
not only nearby contracts, but also the rest of the hog complex. Cash prices
are lower on the National Direct morning cash hog report. The weighted average
price fell $0.80 per cwt to $44.42 per cwt with the range from $42.00 to $46.50
on 2,523 head reported sold. Cash prices are lower on the Iowa Minnesota Direct
morning cash hog report. The weighted average price fell $0.01 per cwt to
$45.80 per cwt with the range from $42.00 to $46.50 on 915 head reported sold.
The National Pork Plant Report reported 142 loads selling with prices adding
$0.99 per cwt. Lean hog index for 10/20 is at $52.49 up $0.17 with a projected
two-day index of $51.85 down $0.64.
Rick Kment can be reached at firstname.lastname@example.org
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