Friday Early Calls

| July 5, 2013
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Harold House with the Kansas City Trade Group expects the markets to remain on a steady to firm note today following the 4th of July holiday break. 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:

The cattle complex should see uneven price action in the opening trade as wary traders await more definitive cash news. Lean hog contracts also seem ready to open on a mixed basis in slow trade volume.

Cattle:     Cash: Steady-$1 Lower         Futures: Mixed        Live Equiv.  $136.83 + $0.79

Unless Mandatory Reporting collected significantly more trade volume than private sources suggested Wednesday, cattle buyers will find it necessary to return from Thursday’s holiday this morning in order to complete necessary procurement for the week. It’s possible that pre-holiday business in Kansas and Texas was large enough to allow packers to limp into next week (i.e., light to moderate live sales were reported in both states at $119 Wednesday). Yet aside from a few scattered dressed deals at $194, the North remains pretty much a blank slate. Asking prices should be restated around $122 in the South and $195 to $196-plus in the North. Live and feeder futures are likely to open on a mixed basis as the board slowly positions ahead of cash news.

Hogs:       Cash:  Steady-$0.50 Higher        Futures: 10-30 Higher        Lean Equiv.  $113.91 – $0.80

Cash hog buyers should restart the country trade Friday morning with steady/firm bids. Whild greater spending Wednesday did manage to spark better country receipts, some major accounts still need to inventory market hogs. Friday’s kill is expected to be close to 400,000 head with Saturday numbers scheduled close to 110,000. Lean hog contracts are also expected to start with uneven prices with trading ideas split between cash premiums and eroding carcass value.

Early Grains:

Grain contracts opened at 8:30 a.m. CDT after being closed for the U.S. July Fourth holiday. Outside commodities were mostly lower in quiet trade early Friday with both gold and crude oil showing losses. The U.S. dollar index was posting a strong gain, rallying with Dow Jones Industrial Average futures.

Outside Markets:

The Dow Jones Industrial Average closed 56.14 points higher Wednesday at 14,988.55. The overnight session saw the Dow Jones futures trade 135-points higher, indicating U.S. stocks could see continued buying interest Friday. The overnight crude oil market was $0.17 lower at $101.07 while Brent crude was $0.26 higher at $105.80. The August gold contract lost $18.90 to close at $1,233.50 while the U.S. dollar index is 0.770 higher at 84.001. Soybeans at the Dalian Exchange were mostly higher while Malaysian palm oil contracts were higher.

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