DTN Midday Livestock Comments 12/10 12:05
Sharp Losses Develop Early Tuesday
Moderate to sharp losses developed in lean hog futures early Tuesday. This
weakness through the complex has spread through other livestock futures
limiting any buyer interest that developed Monday.
By Rick Kment
Livestock futures are trading mostly lower as lean hog contracts are leading
the market lower. Additional softness could develop through the end of the
session. Corn futures are lower at midday. December corn futures are 1 cent per
bushel higher. Stock markets are lower in light trade. The Dow Jones is 22
points lower while Nasdaq is down 4 points.
Moderate to sharp losses have been seen through the complex early Tuesday.
The weakness in hog futures and lack of additional direction from outside
markets has limited buyer interest so far Tuesday. Nearby futures are expected
to continue lower with no sense of additional strength likely to develop before
closing bell. Cash cattle markets are undeveloped with most expecting it to be
the end of the week before active trade develops. Asking prices are likely to
start at $134 to $135 in the South and $210 and higher in the North. Beef
cut-outs at midday are mixed, $0.84 per cwt higher (select) and down $0.20 per
cwt (choice) with moderate movement of 116 total loads reported (27 loads of
choice cuts, 26 loads of select cuts, 32 loads of trimmings, 32 loads of ground
Feeder cattle futures are mixed in a narrow trading range. Pressure in
nearby contracts is directed by the softness in live cattle futures. Traders
are looking at moderate gains in deferred futures. Light trade is expected to
be seen through the end of the session.
Sharp losses have developed through lean hog futures with February futures
holding a $1.22 per cwt loss at midday. The lack of renewed direction in the
complex seems to be erasing support seen Monday. This volatility is once again
pushing markets into a tailspin which could draw additional movement through
the rest of the week. Cash prices are unreported due report delays on the
National Direct morning cash hog report. Cash prices are unreported on the Iowa
Minnesota Direct morning cash hog report. The National Pork Plant Report
reported 215 loads with prices slipping $0.28 per cwt. Lean hog index for 12/06
is at 81.98 down 0.48, with a projected two-day index of $81.69 down 0.29.
Rick Kment can be reached at email@example.com
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