DTN Midday Livestock Comments 04/28 11:59
Livestock Gains Firm in Late Trade Friday
Livestock futures have remained sluggish through much of the morning Friday.
But trade activity is starting to pick up allowing for wider price swings and
increased volatility to develop near closing bell following sharp cash cattle
gains during the week.
By Rick Kment
Strong buyer support has started to develop at midday as buyers are stepping
back into the market after remaining incredibly absent for most of the morning.
The lack of interest Friday morning has kept traders on the sidelines in
sluggish trade, but a flurry of activity may be seen in the last hour of trade
Friday. Corn prices are lower in light trade. May corn futures are 4 cents
lower. Stock markets are mixed in light trade. The Dow Jones is 27 points lower
while Nasdaq is up 2 points.
Live cattle futures have developed late-day buyer activity on the last
trading session of April with April futures posting a $2.50 per cwt rally
trading at $138.10 per cwt. This has sparked additional support into other
nearby contracts following what had previously been lackluster interest in the
rest of the complex. June futures are trading $1.30 per cwt higher with traders
nearing $123 per cwt in light to moderate support. Sharp fundamental and
technical support at the end of the month is expected to springboard trade
activity into renewed buyer activity early next week with a fresh month on the
books, as traders move back into the market. Cash cattle trade appears to be
done for the week following active trade which developed Thursday afternoon.
Cattle still left on show lists are priced at $220 and higher dressed basis and
$140 live basis. Beef cut-outs at midday are higher, $1.24 higher (select) and
up $1.85 per cwt (choice) with moderate movement of 71 total loads reported (24
loads of choice cuts, 16 loads of select cuts, 5 loads of trimmings, 26 loads
of ground beef).
Firm buyer support is quickly moving into feeder cattle futures at midday.
Although the support is contained within a narrow range, the overall support is
growing through the last couple of hours Friday. August contracts continue to
lead the market higher with a $1.60 per cwt rally with the focus on strong cash
market support in the cattle market as well as underlying fundamental and
technical support developing through the entire complex through the waning
hours of April trade.
Firm buyer support has quickly stepped back into the lean hog futures
complex midday with June through August contracts regaining buyer support and
holding gains of 90 cents to $1 per cwt as follow through trade interest has
moved back into the market. The ability to hold current support and push prices
above $73 per cwt in monthly charts is expected to create additional firm
support as traders move into the month of May. Deferred contracts remain mixed
in a narrow trading range, although the lack of direction seems focused on the
overall lack of volume in deferred contracts more than any other factor. Cash
prices are lower on the National Direct morning cash hog report. The weighted
average price fell $0.44 at $55.02 per cwt with the range from $51.00 to $56.00
on 5,126 head reported sold. Cash prices are lower on the Iowa Minnesota Direct
morning cash hog report. The weighted average price fell $0.61 at $55.36 per
cwt with the range from $51.00 to $56.00 on 1,980 head reported sold. The
National Pork Plant Report reported 154 loads selling with prices added $0.02
per cwt. Lean hog index for 4/25 is at $59.93 down $0.23 with a projected
two-day index of $59.71 down $0.22.
Rick Kment can be reached at email@example.com
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