DTN Midday Livestock Comments 05/24 12:06
Livestock Futures Hold Gains
Sharp support developed in cattle futures as traders focus on light volume.
By Rick Kment
Livestock futures are trading higher in very light trade activity. The
direction of the market is expected to remain sluggish over the next couple of
hours. Corn futures are lower at midday. July corn futures are holding 2-cent
losses at midday. Stock markets are lower in light trade. The Dow Jones is 4
points lower while Nasdaq is down 7 points.
Strong gains have developed through the morning Friday despite the lack of
trade activity in the complex. Early support is expected to hold even though
pressure is seen in both cash and boxed beef values. Cash cattle trade is
starting to develop Friday morning with traders focusing on the lack of end of
the week activity in the futures market and softer meat values. Prices are seen
at $199 to $200 per cwt in the North. Beef cut-outs at midday are lower, $0.41
per cwt lower (select) and down $1.44 per cwt (choice) with light movement of
64 total loads reported (27 loads of choice cuts, 21 loads of select cuts, zero
loads of trimmings, 16 loads of ground beef).
Triple-digit gains are holding across the feeder cattle market at midday.
The volume remains terribly slow, but could help to draw additional longer term
support into the market once buyers come back from the holiday break.
Moderate support developed through the lean hog futures markets with traders
focusing on the lack of outside market activity. Most traders are done for the
week and ready for the long holiday weekend. Cash prices moved lower on the
National Daily Direct morning cash hog report. The weighted average price fell
$0.41 per cwt to $89.73 per cwt with the range from $81.00 to $91.50 per cwt on
3,590 head reported sold. The National Pork Plant Report posted 155 loads at
midday with carcass values gaining $2.12 per cwt. Lean hog index for 5/21 is at
$93.44 up 0.15 with a projected two-day index of $93.49 up 0.05.
Rick Kment can be reached at firstname.lastname@example.org
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