DTN Midday Livestock Comments 10/15 11:39
Hog Futures Rally Monday Morning
Strong triple-digit gains have flooded the lean hog complex. This is pushing
nearby lean hog trade to gains near $2 per cwt at midday as buyers quickly and
aggressively step back into the complex.
By Rick Kment
Strong renewed buyer support has quickly swept through lean hog futures with
prices holding gains from $1 to $2 per cwt through the morning. Cattle markets
are much more subdued, although the firming support in live cattle futures
could help to bring additional interest to the entire complex. Corn markets are
higher in light trade. December corn futures are 3 cents higher. Stock markets
are lower in light trade. The Dow Jones is 40 points lower while Nasdaq is down
Buyer support has redeveloped in live cattle trade at midday following
narrow losses seen during most of the morning. Prices are mostly higher with
prices still holding a moderate range from 27 cents lower to 50 cents higher.
December contracts have been able to develop the most aggressive buyer
activity, helping to bring additional support to the complex. Despite strong
pressure last week, prices still remain well within the wide sideways range
seen through the past two months. Cash cattle activity appears to be done for
the week following light to moderate trade in all areas Thursday. Cash cattle
interest is quiet Monday following light to moderate trade that developed
through the last half of the week last week. Both sides are unlikely to show
much interest with show list distribution and inventory taking focus of the
day. Boxed Beef cut-outs at midday are mixed, $0.61 lower (select) and up $1.48
per cwt (choice) with moderate movement of 51 total loads reported (33 loads of
choice cuts, 12 loads of select cuts, no loads of trimmings, 5 loads of ground
Follow-through price pressure has been seen through most of the morning
despite an early attempt to bring some stability back to the complex during the
first few minutes of trade. Feeder cattle futures are focusing on the renewed
buyer support in the grain complex that has pushed corn and soybean markets
higher through morning activity. Losses through the complex have held in a
moderate range from 70 cents to $1 per cwt, with very limited interest in
market stability through the end of the session.
Sharp gains continue to hold across all lean hog futures with triple-digit
gains seen in all remaining 2018 and all 2019 contracts. Spot month December
contracts are leading the complex higher with a $1.97 per cwt rally. The sharp
losses seen last week has left the entire complex oversold, with the focus on
increased buyer support moving back into the complex through the entire
session. Cash prices are lower on the National Direct morning cash hog report.
The weighted average price is $1.03 lower at $60.37 per cwt with the range from
$55.00 to $61.40 on 5,158 head reported sold. Cash prices are lower on the
Iowa/Minnesota Direct morning cash hog report. The weighted average price is
$1.82 lower at $58.76 per cwt with the range from $55.00 to $61.25 on 1,780
head reported sold. The National Pork Plant Report posted 118 loads selling on
the morning report. Pork carcass values gained $1.42 per cwt at $81.46 per cwt.
Lean hog index for 10/11 is at $68.99 down 0.29 with a projected two-day index
of 68.75, down 0.24.
Rick Kment can be reached at email@example.com
Copyright 2018 DTN/The Progressive Farmer. All rights reserved.
For more free DTN information sent right to your email each morning - click here
to sign up for DTN Snapshot.