Duffy Grain, Inc.
P.O. Box 250
Columbus, WI 53925
N3867 Baden St.
Columbus, WI 53925
6107 Twin Lane Rd.
Marshall, WI 53559
DTN Midday Livestock Comments 01/16 12:07
Hog Futures Tumble Lower
Sharp triple-digit losses have quickly flooded into lean hog contracts
Wednesday morning. Nearby contracts are trading $2 per cwt lower as traders
quickly push prices lower.
By Rick Kment
Markets have moved mostly lower Wednesday morning with live cattle trade
hovering in a narrowly mixed range. Strong triple-digit losses have developed
in feeder cattle and lean hog trade as the focus on additional market
liquidation has sparked increased market movement through the entire complex.
Corn markets are higher in light trade. March corn futures are 2 cents higher.
Stock markets are higher in light trade. Dow Jones is 155 points higher with
Nasdaq up 21 points.
Narrowly mixed trading ranges have continued in live cattle futures despite
strong pressure through the rest of the livestock market. Prices have remained
mixed through most of the morning, but contained in a 20 cent per cwt trading
range in all nearby contracts. Even though buyer interest has been hard to
sustain Wednesday, the focus on recent market support is helping to create
needed stability through the entire complex. Cash trade still remains
undeveloped, although a few token bids have slowly trickled into the market
with dressed bids of $197 per cwt. Asking prices are starting to become more
evident through the morning with prices listed at $127 to $130 live and $198 to
$200 dressed. Active trade is still expected to be delayed until sometime
Thursday or Friday. Boxed Beef cut-outs at midday are mixed, $0.85 higher
(select) and down $0.05 per cwt (choice) with light movement of 82 total loads
reported (50 loads of choice cuts, 11 loads of select cuts, 10 loads of
trimmings, 11 loads of ground beef).
Triple-digit losses have developed in feeder cattle contracts with nearby
contracts holding losses of $1 to $1.45 per cwt. This pullback in price levels
has created some increased concerns about follow through pressure based on
increased corn market prices. The focus on readily available cattle numbers
through the spring and summer is not only depressing price levels, but has
eliminated any premium in the market with January and March futures not trading
just pennies apart, while all contract through May contained in a $1 per cwt
price spread. Limited activity is expected to be seen through most contacts
through the rest of the session.
Sharp losses have quickly flooded into the complex Wednesday morning with
nearby contracts holding $2.30 to $2.50 per cwt losses through late morning.
Trade volume has slowed through the last half of the morning although the
bearish tone in the market continues to add uncertainty to the entire complex.
Nearby losses have broken through nearby support levels as markets shifting
below January lows through the morning. This could add additional weakness
through the rest of the session, and likely the end of the week. Cash prices
are lower on the National Direct morning cash hog report. The weighted average
price is down $0.06 at $51.38 per cwt with the range from $47.00 to $53.00 on
6,409 head reported sold. Cash prices lower on the Iowa/Minnesota Direct
morning cash hog report. The weighted average price is down $0.50 at $50.97 per
cwt with the range from $47.00 to $53.00 on 2,579 head reported sold. Pork
carcass values are higher on the morning report with prices gaining $0.20 per
cwt at $70.53 per cwt with 215 loads traded. Lean hog index for 1/14 is $57.65,
up 0.44, with a projected two-day index is $58.02, up 0.37.
Rick Kment can be reached at email@example.com
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