DTN Midday Comments on Livestock; Live Cattle, Feeder Cattle, and Lean Hogs

Live Cattle Futures Fall on Technical Pressure

Technical selling pressure has developed through the cattle complex. This has pushed nearby contracts moderately to sharply lower in both the feeder cattle and live cattle markets. Lean hog contracts are mixed in a moderate range, although volume remains light.
By Rick Kment DTN Analyst

GENERAL COMMENTS:
Cattle futures continue to post moderate to sharp losses at midday driven by technical pressure in the live cattle futures market. Feeder cattle futures are posting the most aggressive nearby contract losses, but the inability of live cattle to hold initial stability seems to be directing trade activity. Lean hog futures are mixed with the pressure in nearby contracts being balanced by light buyer interest in deferred contract months. Corn futures are lower at midday. September corn futures are holding 5 cent losses at midday. Stock markets are lower in higher trade. The Dow Jones is 10 points higher while Nasdaq is up 13 points.
LIVE CATTLE:
Even though early trade remained extremely uneventful, selling pressure quickly developed through the live cattle futures markets. This has pushed nearby contracts between 70 and 95 cents per cwt lower, with current price levels testing support levels. A break below last week’s low in August contracts of $121.17 per cwt could trigger additional liquidation through the last half of the trading session. 

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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.

DTN Midday Comments on Grains

Wheat Lightly Higher at Midday

Grain trade is mixed in quiet midday trade.
By David Fiala DTN Contributing Analyst
General Comments on grains
The U.S. stock market indices are falt with Dow futures up 10. The interest rate products are flat to lower. The dollar index is 35 higher. Energies are narrowly mixed with crude up $0.15. Livestock trade is lower. Precious metals are lower with gold off $9.
CORN
Corn trade is 3 to 7 lower in quiet trade at midday. Outside markets are neutral to slightly negative. The weather forecast remains worrisome for many areas in the western Corn Belt, while the east generally looks better. Basis remains strong in the country indicating further support in the cash market for now. Ethanol margins are decent on strong crude prices, and rallying RIN values. Production was slightly lower on the week, while inventories rose slightly on weaker post holiday demand and imports. Nearby contract support is at $5.40, with resistance at $5.57, while December is at $5.01, and resistance at $5.23.

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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.

DTN Morning Comments on Livestock

Cooling Meat Futures to Open Mixed

Look for the cattle complex to momentarily step back from Monday’s rally, opening this morning on a mixed basis. Early activity in both pits should be a combination of follow-through buying and profit taking. Lean hog futures are also likely to begin with uneven price action.
By John Harrington DTN Livestock Analyst
Cattle: Steady Futures: mixed Live Equiv $133.20 – 0.17* Hogs: Steady-0.50 LR Futures: mixed Lean Equiv $109.07 – 0.41** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue

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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.

DTN Morning Comments on Grains

Grains Higher Early Tuesday

Corn futures are higher at 6 a.m. CDT; soybeans higher; wheat higher.
By Darin Newsom DTN Senior Analyst
6:00 a.m. CME Globex: Corn 13 cents higher, soybeans 23 cents higher, and wheat 11 cents higher.
CME Globex Recap: There will be a lot of talk early Tuesday that grains rallied overnight due to lower weekly crop condition reports in corn, soybeans, and spring wheat. However, it needs to be remembered that the seasonal tendency of crop condition numbers is to decrease as crops start to mature. Outside commodities were mostly higher while the U.S. dollar index was lower.

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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.

DTN Morning Comments on Cotton

Cotton Contracts Higher Early Tuesday

Taking its cue from a bullish weekly crop condition report and spillover support from grains, the cotton market showed gains early Tuesday.
By Darin Newsom DTN Senior Analyst
OUTSIDE MARKETS: Cotton contracts on China’s Zhengzhou Exchange were lower. Dow Jones Industrial Average futures were 30 points higher indicating continued buying was likely on the open of US equities trade Tuesday. Crude oil is down $0.39 at $102.75 while gold is up $14.30 at $1,249.20. The U.S. dollar index is 0.165 higher at 84.358. Grain futures are higher early Tuesday morning.
General Comments: The weekly crop condition report released late Monday afternoon resulted in a DTN Cotton Crop Condition Index of 97 points, well off the previous week’s rating of 118 points and last year’s 112 points. Weather remains the key issue in the lower ratings, with forecasts calling for little change. As for crop progress, also released in Monday’s weekly reports, the crop was seen at 51% squaring as compared to the five-year average of 63%, and setting bolls was pegged at 10% as compared to the average of 18%. All of these numbers should be considered bullish for new-crop cotton.
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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.

DTN Morning Comments on Livestock

Hog Contracts Set to Open Moderately Higher

The lean hog pit should start moderately higher, supported by short covering and ideas that Monday’s sell-off was overdone. Expect cattle futures to open on a mixed basis with traders split between residual buying and beef demand nervousness.

By John Harrington DTN Livestock Analyst

Cattle: Steady-$1 LR Futures: mixed Live Equiv $134.91 -$1.20* Hogs: Steady-0.50 HR Futures: 10-30 HR Lean Equiv $114.14 + 0.36** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue

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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.

DTN Morning Comments on Grains

Grains Post Strong Gains Early Tuesday

Corn futures are higher at 6 a.m. CDT; soybeans higher; wheat higher.
By Darin Newsom DTN Senior Analyst
6:00 a.m. CME Globex: Corn 8 cents higher, soybeans 21 cents higher, and wheat 5 cents higher.
CME Globex Recap: Grains traded higher throughout the overnight session as traders turned their focus to weather forecasts calling for hotter temperatures across much of the U.S. Midwest. Also, all three grains saw follow-through technical buying from increasingly bullish short-term charts. Outside commodities were mixed due to pressure from the continued strength of the U.S. dollar index.

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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.