Gains Hold Across Livestock Futures
Renewed support has developed in both cattle and hog futures as traders focus on potential demand growth. The improvement of pork and beef values is helping to keep buyers active in the nearby contracts.By Rick Kment DTN Analyst
GENERAL COMMENTS:
Livestock futures continue to trade on the positive side Tuesday morning as the focus has turned to higher meat prices and the potential for improved demand. Both cattle and hog futures have slipped from session highs, but continue to show improvement. Corn futures are trading lower in light trade at midday. May corn futures are holding 5 cent losses at midday. Stock markets are higher in light trade. The Dow Jones is 131 points higher while Nasdaq is up 37 points.
LIVE CATTLE:
Nearby live cattle futures continue to hold light to moderate gains at midday. Early support across the complex has faded slightly due to lack of additional market direction and buyer orders seemingly drying up. But the firmness through the rest of the livestock market and expectations of improving beef demand is likely to keep prices positive through the end of the session. Cash cattle activity is quiet with bids still undeveloped. It is likely that active trade will be pushed off until the last half of the week. Asking prices are starting to develop at $128 in the South and $205 and higher in the North. Beef cut-outs at midday are higher, $0.82 per cwt lower (select) and up $0.80 per cwt (choice) with light movement of 103 total loads reported (49 loads of choice cuts, 18 loads of select cuts, eight loads of trimmings, 28 loads of ground beef).
Read More:
http://sweetfutures.com/2013/dtn-midday-comments-on-livestock-4/
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.
