Harold House with the Kansas City Trade Group suggests the markets may be poising for the release of next Wednesday’s Crop Progress and Condition report and he has more on Wednesday’s early markets. Click below to hear KMZU’s Mandy Young talk with Harold House from the Kansas City Trade Group.
Look for the cattle pit to begin Wednesday with uneven price action as traders cautiously position before the development of late-week cash. Lean hog futures also seem likely to open on a mixed basis thanks to follow-through buying and midweek profit taking.
Cattle: Cash: Steady-1 Lower Futures: Mixed Live Equiv. $138.25 – $0.72
While we could see a few preliminary bids in cattle country this morning, there are signs (e.g., choppy futures, the spread between early bids and asking prices) that traders are in the same groove as last week. If so, significant trade volume may not surface until sometime Friday. Nevertheless, preliminary bids could be around $121-$122 in the South and $196-$198 in the North. Asking prices may assume greater definition in the neighborhood of $126 in the South and $202-$203 in the North. Live and feeder contracts should open on a mixed basis with neither side showing a great deal of determination.
Hogs: Cash: Steady Futures: Mixed Lean Equiv. $102.92 + $0.71
Expect the cash hog market to be basically steady in the early rounds. Yet since Tuesday country run was quite light, packers could soon find it necessary to write bigger checks if the offering of ready barrows and gilts simply looks to sparse. Lean futures are prepared to start out with uneven price action thanks to a combination of residual buying and midweek profit taking.
The only grain contracts posting gains are the nearbys. Deferred contracts are mostly trading lower, particularly in new-crop soybeans and corn where weather is less of an issue this week.
Outside markets are mostly higher with metals and energies posting small gains. Dow Jones Industrial Average futures were under pressure once again. The Dow Jones Industrial Average closed 76.49 points lower Tuesay at 15,177.54. The overnight session saw the Dow Jones futures trade 55-points lower, indicating U.S. stocks could see continued selling Wednesday. The overnight crude oil market was $0.33 higher at $93.64 while Brent crude was $0.08 higher at $103.32. The August gold contract lost $1.10 at $1,396.10, while the U.S. dollar index gained 0.011 at 82.78.