Livestock Futures Hang onto Gains
Even though livestock futures continue to trade mostly higher at midday. The inability to hold and extend early gains remains concerning to commercial and noncommercial traders.
By Rick Kment DTN Analyst
GENERAL COMMENTS:
Livestock futures are holding onto gains in nearby contracts at midday. Although buyer support remains evident, contracts have backed away from morning highs. The uncertainty about meat demand through the summer and fall months is adding additional pressure to deferred live cattle futures. Corn futures are trading mixed in light trade. May corn futures are holding 3 cent gains at midday. Stock markets are lower in light trade. The Dow Jones is 40 points lower while Nasdaq is down 2 points.
LIVE CATTLE:
Live cattle futures have bounce higher and lower through the morning. The widespread gain earlier in the session following strong moves in the feeder cattle and lean hog futures was expected to spur additional support. But additional buyers could not be found, allowing for prices to back away from early gains. Pressure is developing in deferred futures at midday. This is creating a cautious attitude through the entire complex. Traders are very concerned about the ability to move beef into the retail market through the second half of the year. Cash cattle markets are typically quiet for a Monday. Show lists are generally smaller with just a few more cattle offered in Kansas than last week. Traders are expected to remain cautiously optimistic to the early rally in the live cattle futures. Asking prices are expected to be seen near $129 to $130 in the South, and $207 and higher in the North. But active movement is likely to be pushed to the second half of the week. Beef cut-outs at midday are mixed, $0.54 per cwt higher (select) and down $0.23 per cwt (choice) with light movement of 76 total loads reported (35 loads of choice cuts, 21 loads of select cuts, seven loads of trimmings, 13 loads of ground beef).
Read More
http://sweetfutures.com/2013/dtn-midday-comments-on-livestock-2/
The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.
