DTN Midday Livestock Comments 05/20 12:03
Livestock Futures Holding Onto Midday Gains
Trade is expected to remain firm following renewed buyer interest through
By Rick Kment
Livestock futures have shown additional support through late morning.
Additional buyer interest could develop through the end of the day. Corn
futures are trading lower in light trade at midday. July corn futures are
holding 6 cent losses at midday. Stock markets are higher in light trade. The
Dow Jones is 45 points higher while Nasdaq is up 12 points.
Moderate to strong gains have developed through the complex with the initial
downward pressure has been replaced by firmer commercial support. Traders are
looking for additional buyer interest through the rest of the session. Cash
cattle markets are undeveloped with bids and asking prices still hard to find.
Show lists are generally larger going into the week. Beef cut-outs at midday
are higher, $1.45 per cwt higher (select) and up $0.45 per cwt (choice) with
moderate movement of 102 total loads reported (42 loads of choice cuts, 46
loads of select cuts, six loads of trimmings, eight loads of ground beef).
The sharp losses seen through the morning are being replaced by mixed trade
as the initial shock to the market has worn off. May futures continue to hold
triple-digit losses, although light gains are seen through the rest of 2013.
Trade is expected to remain sluggish through the end of the session.
Lean hog futures are holding moderate support through the morning with
traders once again focusing on potential demand support. The sharp losses
Friday seem to be overstated, which is sparking firm buying in both nearby and
deferred futures. Cash prices moved lower on the National Daily Direct morning
cash hog report. The weighted average price fell $0.01 per cwt to $89.72 per
cwt with the range from $83.78 to $90.50 per cwt on 3,035 head reported sold.
The National Pork Plant Report posted 139 loads at midday with carcass values
gaining $0.11 per cwt. Lean hog index for 5/15 is at $92.51 up 0.36 with a
projected two-day index of $92.93 up 0.42.
Rick Kment can be reached at firstname.lastname@example.org
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