DTN Midday Livestock Comments 10/22 11:44
Cattle Futures Lead Rally Monday
Aggressive triple-digit buyer support has swept through nearby feeder cattle
trade. This is helping to bring additional buyers to the market which were
previously holding a defensive stance following last week's losses.
By Rick Kment
Strong gains quickly moved into livestock trade early Monday morning. The
underlying support seen through the complex has continued to hold as traders
are looking for additional direction and buyer interest following the active
pressure last week. This may help to rekindle deeper market support through the
end of the month. Corn markets are higher in light trade. December corn futures
are 2 cents higher. Stock markets are mixed in light trade. The Dow Jones is
195 points lower while Nasdaq is up 9 points.
Strong morning gains have quickly moved through live cattle trade with early
gains holding triple-digit market shifts in most nearby contracts. The focus on
increased trade activity and gains over $2 per cwt in feeder cattle trade is
quickly causing buyers to return to the live cattle market. Focus on
lighter-than-expected cattle in feedlots at the end of September is sparking
some underlying support through the entire complex. Cash cattle interest is
quiet with show list distribution the extent of market activity. It may be
midweek or later before active bids and asking prices are seen and late in the
week before trade develops. Boxed Beef cut-outs at midday are higher, $2.65
higher (select) and up $0.88 per cwt (choice) with moderate movement of 49
total loads reported (16 loads of choice cuts, 14 loads of select cuts, 10
loads of trimmings, 9 loads of ground beef).
Gains in the feeder cattle futures complex is leading the entire livestock
market higher Monday morning. The focus on decreased placements in the month of
September compared to year-ago levels initiated the buying activity. But this
may not be enough to spark active support through the rest of the week as
traders will need some additional information and help fundamentals through the
end of the month.
Firm gains are holding in lean hog futures trade following sluggish mixed
trade early in the session. The strong market rally in cattle trade seen Monday
morning has helped to bring about increased buyer activity through the entire
complex. Even though prices have pulled back from session highs, the focus on
renewed buyer activity is helping to solidify trade support early in the week,
which could spark some underlying movement through the rest of the complex.
Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct
morning cash hog report. The National Pork Plant Report posted 135 loads
selling on the morning report. Pork carcass values added $1.75 per cwt at
$80.17 per cwt. Lean hog index for 10/18 is at $67.22 down 0.54 with a
projected two-day index of 66.43, down 0.79.
Rick Kment can be reached at email@example.com
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