DTN Midday Livestock Comments 04/24 11:52
Cattle Futures Tumble Lower
Sharp triple-digit losses have quickly swept through cattle trade with
technical pressure moving through all contracts. Hog futures are mixed with
very limited activity seen Wednesday.
By Rick Kment
Sharp losses have flooded through live cattle and feeder cattle trade
Wednesday morning. The inability to maintain recent support has sparked a
technical reversal, and quickly attracted active liquidation. Corn futures are
lower in light trade. July corn futures are 2 1/4 cents lower. Stock markets
are mixed in light trade. Dow Jones is 7 points lower with Nasdaq up 3 points.
Triple-digit losses have quickly moved into live cattle trade Wednesday
morning. The focus on moving June futures below initial support levels has
sparked follow through technical pressure in all nearby contracts. Increased
market weakness is likely to be seen through the end of the session, although
at this point, traders may not move prices much lower than $2 per cwt
Wednesday. Cash cattle trade is still undeveloped Wednesday morning, although a
few bids have developed. Offers are seen at $123 to $125 live and $205 dressed.
This is well below asking prices of $130 live and $212 dressed, but sharp
futures pressure may spark interest Wednesday afternoon. Boxed Beef cut-outs at
midday are lower, $0.14 lower (select) and down $0.40 per cwt (choice) with
light movement of 93 total loads reported (53 loads of choice cuts, 20 loads of
select cuts, 7 loads of trimmings, 13 loads of ground beef).
Aggressive market pressure is quickly moving through the entire cattle
complex. Feeder cattle trade has led the complex lower with losses of $2 to
$2.50 per cwt seen through most of the morning. May and August futures both
remain $2.37 per cwt lower with the continued softness quickly moving through
initial support levels, and pulling back from April gains. Little fundamental
changes have developed, allowing technical shifts to lead the complex lower
Lean hog futures have bounced around in a narrow to moderate range through
the entire morning. Although the aggressive liquidation has ended through the
complex, traders still remain cautious about stepping back into the market.
There will be increased focus on the weekly export sales report Thursday as
trades will focus on the potential for increased overall support across the
complex. Futures prices are mixed within a narrow range at midday with very
little direction expected through the end of the session. Cash prices are
unchanged on the National Direct morning cash hog report. The weighted average
price remained steady at $80.57 per cwt with the range from $73.00 to $83.00,
on 7,220 head reported sold. Cash prices are unreported due to confidentiality
on the Iowa/Minnesota Direct morning cash hog report. Pork values continue to
shift higher based on expected long term support in most primals. Pork cutouts
added $0.87 per cwt at $89.79 per cwt with 152 loads traded. Lean hog index for
4/22 is $82.07 up 0.53, with a projected two-day index is unreported at this
Rick Kment can be reached at email@example.com
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