Harold House with the Kansas City Trade Group points out that feeder cattle are higher Friday morning with hogs opening mixed. Click below to hear more on the markets from KMZU’s Mandy Young and Harold House from the Kansas City Trade Group.
Initial moves through the livestock markets are expected to be kept to a minimum through the market. Traders in the cattle market are closely following the development in cash cattle trade.
Cattle: Cash: Steady-$1 Lower Futures: 10-30 Lower Live Equiv. $136.79 – $0.39
Cash cattle activity is entering the home stretch with very little change in either packer interest or feeders willing to lower prices than seen earlier in the week. Packers are expected to still remain short bought and will be forced to gain access to numbers. And right now that is sooner than later. But it’s uncertain as to how many cattle will be sold given the intensity of the standoff through the week. Asking prices are likely to be restated around $124 in the South and $200-plus in the North. Live and feeder contracts should open slightly lower with light to moderate end of the week pressure once again focusing on demand uncertainty.
Hogs: Cash: Steady-$1 Higher Futures: Mixed Lean Equiv. $107.46 – $1.10
Despite the pullback in both the futures market and pork values Thursday’s cash activity is still expected to find some late-week support. There may be some moderate softness seen through the market due to light runs expected Saturday. But overall supplies of hogs still remain tight and that is not expected to change anytime soon. Lean futures are expected to open mixed with light support developing in the nearby contracts while deferred contracts seem to be concerned about slipping demand.
Grains posted another quiet overnight session with corn and wheat trading within four-cent ranges while soybeans rallied. The latter was near session highs early Friday morning, supported by strength in the other bean complex markets.
Outside commodities were mostly higher despite a rally in the U.S. dollar index. The Dow Jones Industrial Average closed 180.85 points higher Thursday at 15,176.08. The overnight session saw the Dow Jones futures trade 2-points lower, indicating U.S. stocks could see light selling interest early Friday. The overnight crude oil market was $0.31 higher at $97.00 while Brent crude was $0.35 higher at $105.30. The August gold contract gained $1.30 to close at $1,379.10, while the U.S. dollar index gained 0.121 at 80.873. Soybeans at the Dalian Exchange were lower while Malaysian palm oil contracts were higher.