End Of Week Early Calls

| June 28, 2013
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Harold House with the Kansas City Trade Group says we’re looking for big number in corn stalks after Friday’s release of USDA Stocks report. Click below to hear more on the markets from KMZU’s Mandy Young and Harold House from the Kansas City Trade Group.

 

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Early Livestock:         

 

Lean hog contracts should open moderately lower, pressured by late-week profit taking, pre-report positioning, and fears of tiring pork demand. Cattle futures are also expected to begin the morning with moderate backsliding thanks to pre-cash caution and the discount of recent feedlot sales.

 

Cattle:     Cash: Steady     Futures: 25-50 Lower  Live Equiv.  $136.42 + $0.61

 

A five-day window of potential fed cattle marketing shrunk into several fast-and-furious hours just before the weekend break. Short-bought and well-margined packers should be at least somewhat encouraged to move toward a higher asking of $122 in the South and $195-$196 in the North. Look for opening bids around $117 live and $190-$191 dressed. Live and feeder contracts seem set to open moderately lower, checks by profit taking and midsummer demand worries.

 

Hogs:       Cash:  Steady      Futures: 25-50 Lower   Lean Equiv.  $117.30 – $1.68

 

Hog buyers should start work Friday morning with generally steady bids. Lean futures are expected to start out moderately lower as some traders prudently take some money off the table following Thursday’s surge forward and before the June 1 H & P report is released this afternoon at 2 p.m. The weekly slaughter total should nose back over 2-million for the first time since early June. Pre-report guesses expect total hog numbers to be slightly larger than 2012 with the breeding herd fractionally smaller.

 

Early Grains:

 

Grains posted tight trading ranges overnight as traders took to the sidelines ahead of Friday’s USDA reports.

 

Outside Markets:

 

Outside commodities were mostly higher, though gold continues to free-fall. The precious metal dipped below $1,200 early in the overnight session before cutting its losses through early Friday morning. The Dow Jones Industrial Average closed 114.35 points higher Friday at 15,024.49. The overnight session saw the Dow Jones futures trade 59-points higher, indicating U.S. stocks could see continued buying interest Friday. The overnight crude oil market was $0.47 higher at $97.52 while Brent crude was $0.24 higher at $103.06. The August gold contract lost $10.40 to close at $1,201.20 while the U.S. dollar index is 0.63 higher at 82.965. Soybeans at the Dalian Exchange were mixed while Malaysian palm oil contracts were lower.

 

 

 

 

 

Category: Farm, Farm News