Harold House with the Kansas City Trade Group takes a look at how the markets are shaping up at mid-week.
To hear Kansas City Trade Group’s Harold House talk with KMZU’s Mandy Young click below:
Lean hog contracts should open moderately higher, supported by strength in cash and product markets. On the other hand, the cattle complex is likely to begin with mixed prices as traders position ahead of cash news.
Cattle: Cash-$2 Lower Futures: mixed Live Equiv $138.18 + 0.52
Look for better cattle buying to start to surface this morning, though bids will no doubt remain well below steady money with last week. While many showlists are priced around $10 over spot June, selling interest among hedgers would no doubt, quickly, improve in the face of bids that imply basis levels closer to those seen last week. Significant trade volume could be delayed until Thursday or Friday.
Hogs: Cash $0.50-$1 Higher Futures: $10-$30 Higher Lean $95.06 + 0.91
After slowing down a bit at the beginning of the week, the cash hog market quickly moved back into the passing lane Tuesday. Yet, despite significantly higher bids, country movement was no greater than light to moderate. This fact should once again dictate greater spending here at midweek.
The continued strength of the soybean market pulled corn and wheat higher, though volume was light once again. Contracts were trading near session highs early Wednesday morning after trading lower for a short time overnight.
Outside markets were mostly lower, though gold was able to manage a minor rally. Both the U.S. dollar index and Dow Jones Industrial Average futures saw light selling interest as well.