DTN Midday Livestock Comments 04/23 11:52
Hog Futures Surge Higher
Volatility in the hog complex continues to be seen with sharp triple-digit
gains flooding into nearby lean hog futures at midday. Traders once again seem
to put aside demand concerns and are focusing on summer supply issues.
By Rick Kment
Renewed buyer support has quickly jumped back into the lean hog futures
market. Light to moderate volume is still expected to exist through the hog
complex, but firming cash and carcass values in the morning report have put the
focus back on tight supply situations. Cattle futures are holding light to
moderate gains in most nearby contracts. Corn futures are higher at midday. May
corn futures are 7 cents per bushel higher. Stock markets are lower in light
trade. The Dow Jones is 13 points lower while Nasdaq is down 23 points.
Narrowly mixed trade continues to hold in nearby live cattle futures April
futures are holding a 20 cent loss, as traders continue to exit the soon the
April market and move into the June and August futures contracts. April futures
are still able to sustain price levels above the $143 per cwt threshold, which
could keep from drawing aggressive liquidation in the market over the near
future. Firmness in boxed beef values in morning reports helped to spark the
added interest through summer contracts. Cash cattle markets are still quiet
with a few bids starting to develop around $132 per cwt in the North. At this
point it may be after the cattle on feed report is released Friday afternoon.
Asking prices are at $148 and higher in the South and $238 and higher in the
North. Beef cut-outs at midday are higher, $1.28 per cwt higher (select) and up
$1.14 per cwt (choice) with light movement of 92 total loads reported (36 loads
of choice cuts, 24 loads of select cuts, four loads of trimmings, 28 loads of
Moderate gains are holding across the feeder cattle complex despite the
firming tone of corn markets and lack of strong buyer interest in the live
cattle complex. Traders are looking for additional direction from outside
markets and potential additional insight into the upcoming cattle on feed
report which will be released Friday.
Triple-digit gains have redeveloped through lean hog futures with June and
July futures holding a $1.45 and $1.77 per cwt gain respectively. The firmness
in both cash values and pork carcass values on the morning report helped to
redevelop buyer support. This could sustain buyer interest through the end of
the session. Cash prices are higher on the National Direct morning cash hog
report. The weighted average price higher $1.30 per cwt to $115.73 per cwt with
the range from $105.00 to $117.50 per cwt on 1,427 head reported sold. Cash
prices are unreported due to confidentiality on the Iowa Minnesota Direct
morning cash hog report. The National Pork Plant Report reported 283 loads with
prices gaining $1.37 per cwt. Lean hog index for 4/18 is at $119.65 down 1.21,
with a projected two-day index of $118.48 down 1.17.
Rick Kment can be reached at email@example.com
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