Printable Page Market News   Return to Menu - Page 2 3 4 5 6 7 8 9 10
 
 
DTN Midday Livestock Comments          06/27 12:20

   Sharp Losses Hold in Cattle Trade Midday Tuesday   

   Aggressive triple-digit losses hold across the complex as traders flood the 
market as they back away from previous market support. This could leave the 
complex under pressure once again with even more volatility through the rest of 
the week.  

By Rick Kment
DTN Analyst

GENERAL COMMENTS: 

   Cattle futures remain sharply lower with triple-digit losses quickly 
developing Tuesday morning. This lack of support in the complex has added to 
the market pressure. Hog markets are lightly traded with narrow moves limiting 
activity and keeping volume light. Corn prices are higher in light trade. July 
corn futures are 2 cents higher. Stock markets are lower in light trade. The 
Dow Jones is 21 points lower while Nasdaq is down 51 points.

   LIVE CATTLE:

   Sharp losses are seen in cattle trade with triple-digit losses seen in all 
live cattle markets. Even though live cattle futures are posting losses from $2 
to $2.70 per cwt losses, the expanded trading limits available due to Monday's 
gains could create even wider market swings before the end of the session. 
There continues to be some significant market shifts available to the complex 
and this could shift the tone of the market through the end of the week. Cash 
cattle markets remain generally quiet Tuesday with a few bids trickling into 
Iowa at $119 live basis through the morning. Asking prices are undeveloped in 
all areas at this point. It is expected that additional bids will develop 
either later in the day or earlier Wednesday, but active trade may not be seen 
until sometime Thursday or Friday. Beef cut-outs at midday are lower, $1.40 
lower (select) and down $2.36 per cwt (choice) with light movement of 60 total 
loads reported (25 loads of choice cuts, 20 loads of select cuts, 8 load of 
trimmings, 7 loads of ground beef). 

   Feeder Cattle:

   Sharp losses have continued to develop through feeder cattle markets which 
is limiting overall support through the entire market. With expanded trading 
limits during the session, traders remain concerned that traders will have the 
opportunity to extend losses beyond the $4.50 per cwt gains seen Monday and 
create even more bearish selling pressure as the week continues. This could not 
only create added volatility into the market but uncertainty through the entire 
cattle complex.

   LEAN HOGS:

   Narrow trading ranges are holding in lean hog futures with the hog complex 
trading between 20 cents lower and 30 cents higher at midday. The lack of 
direction in the complex given the aggressive losses across the cattle complex 
appears to be focusing on firm fundamental support still able to develop across 
the complex. This may help to draw buyer support back into the complex through 
the rest of the week. Cash prices are lower on the National Direct morning cash 
hog report. The weighted average price fell $0.79 at $84.99 per cwt with the 
range from $82.00 to $86.00 on 3,632 head reported sold. Cash prices are 
unreported on the Iowa/Minnesota Direct morning cash hog report. The National 
Pork Plant Report reported 167 loads selling with prices adding $1.23 per cwt. 
Lean hog index for 6/23 is at $90.62 up $0.45 with a projected two-day index of 
$91.10 up $0.48. 

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


(ES)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.

Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot.
 
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN