Lean Hog Futures Hold Early Gains
The ability for lean hog futures to maintain support seen early in the session is helping to stabilize the market. Cattle futures are mixed at midday following moderate early morning pressure. The firmness wholesale beef prices is drawing traders back to the complex.By Rick Kment DTN Analyst
GENERAL COMMENTS:
Mixed trade is seen at midday with lean hog futures leading the support through the trading session. Live cattle futures held moderate losses early in the session, but are gaining momentum based on strong boxed beef values. Corn futures are trading mixed in light trade at midday. July corn futures are holding 1 cent gains at midday. Stock markets are higher in light trade. The Dow Jones is 78 points higher while Nasdaq is up 11 points.
LIVE CATTLE:
Trade in the live cattle futures has been under pressure through most of the morning. Front month June futures have held narrow gains Wednesday, while all other nearby contracts posted early significant losses. The impressive rally in boxed beef values has drawn additional buyer interest into the complex, replacing moderate early pressure. The market still remains unsettled with traders uncertain just how much buyer support is under this latest round of buying activity. Market are expected to remain mixed in a narrow range through the remainder of the session. Cash cattle markets remain inactive midweek, although packer inquiry is likely to improve through the next couple of days. A few bids are seen in the South at $124 per cwt, and $198 to $200 in the North. But so far no interest in trade has developed. Asking prices are being restated at $126 to $127 in the South and $205 in the North, although asking prices are still not well defined at this point. Beef cut-outs at midday are higher, $0.63 per cwt higher (select) and up $2.09 per cwt (choice) with active movement of 144 total loads reported (42 loads of choice cuts, 48 loads of select cuts, 23 loads of trimmings, 31 loads of ground beef).
Read More
http://sweetfutures.com/2013/dtn-midday-comments-on-livestock-7/
The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results.
