DTN Midday Livestock Comments 09/15 11:56
Mixed Prices Hold Across Livestock Complex
Light trade has been seen through the morning Monday. This has kept cattle
prices bouncing higher and lower repeatedly over the last few hours, which is
creating some uncertainty about follow through activity as the end of the
trading session. Traders are looking for additional late-day direction before
moving in from the sidelines.
By Rick Kment
Mixed trade continues to be seen through livestock futures Monday morning
with trade volumes remaining light. This is keeping prices in a tight to
moderate range with the focus not only on the direction of outside markets, but
also the ability to sustain current or stronger demand for beef and pork
through the rest of the fall. Corn futures are higher at midday. December corn
futures are 2 cents per bushel higher. Stock markets are mixed in light trade.
The Dow Jones is 13 points higher while Nasdaq is down 48 points.
Live cattle trade has bounced higher and lower through the morning as light
trade is seen Monday and the few players stepping in and out of the market
continue to have some significant control of price direction. Nearby futures
are holding onto narrow gains at midday, but moderate pressure in deferred
contracts continues to limit the ability to draw additional buyer support back
into the complex. Cash cattle remains inactive and likely to remain that way
until midweek or later. Show lists are mixed with available number generally
smaller in the South, and steady to slightly higher in the North. Asking prices
are still hard to pinpoint, but around $164 in the South and $253 to $255 in
the North. Bids are undeveloped, and may not start to be seen until Tuesday or
Wednesday. Beef cut-outs at midday are mixed, $0.72 per cwt higher (select) and
down $0.06 per cwt (choice) with moderate movement of 91 total loads reported
(45 loads of choice cuts, 18 loads of select cuts, 15 loads of trimmings, 14
loads of ground beef).
Trade remains extremely sluggish through the morning Monday with nearby
contracts hovering between 10 cents lower and 20 cents higher. Traders are
caught between the potential for tight demand to keep buyers active, and
growing questions as to just how strong beef demand will remain through most of
the fall. This is likely to keep prices mixed in a narrow to moderate range
through the rest of the trading session.
Trade support is firming in nearby lean hog contracts despite pressure in
morning reports concerning both cash values and pork cutouts. The expectation
that traders have oversold the complex last week, is helping to draw light
support through nearby contracts, although traders in deferred summer 2015
contracts are much less convinced that additional support can be maintained.
October futures continue to lead the complex higher with an 88 cent per cwt
rally at midday. Cash prices are lower on the National Direct morning cash hog
report. The weighted average price fell $3.69 per cwt to $97.11 per cwt with
the range from $90.00 to $102.25 per cwt on 2,328 head reported sold. Cash
prices are unreported due to confidentiality on the Iowa Minnesota Direct
morning cash hog report. The National Pork Plant Report is reported 138 loads
selling as prices gaining $3.10 per cwt. Lean hog index for 9/11 is at $101.34
up 1.14, with a projected two-day index of $102.26 up 0.92.
Rick Kment can be reached at firstname.lastname@example.org
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