Harold House with the Kansas City Trade Group suggests the markets could be watching to see what planting got done over the weekend in the Corn Belt after the weekend of drier weather than what was expected. Click below to hear KMZU’s Mandy Young talk with Harold House from the Kansas City Trade Group.
Live and feeder contracts should open moderately lower, pressured early by follow-through selling and eroding carcass value. Lean hog futures are likely to begin in the black, helped by residual buying interest and seasonally strong fundamentals.
Cattle: Cash: Steady-1 Lower Futures: Mixed 10-30 Lower Live Equiv. $136.80 – $1.16
With the trading hourglass quickly draining of sand, cattle buyers and sellers must soon agree on terms. Opening bids should be $121-$122 in the South and $196-$197 in the North. On the other hand, asking prices are likely to be restated around $125-$126 on a live basis and $200-$202 dressed. Look for moderate trade volume to surface in most areas sometime between late morning and early afternoon. Live and feeder contracts should open on a mixed basis as traders await the development of cash news.
Hogs: Cash: Steady-$0.50 Higher Futures: 10-30 Higher Lean Equiv. $103.81 + $1.71
Look for the cash hog market to open close to steady Monday morning. Stronger live prices on Tuesday more than countered softer dressed deals, suggesting that some packers still have some late-week appetite. Lean hog futures seem geared to start out moderately lower, checked by late-week profit taking.
Grains started the overnight session under pressure from selling tied to ideas of weekend rains across much of the U.S. weren’t as heavy as forecast Friday. This meant Friday’s rally had accounted for possible problems, opening the door for renewed selling interest.
Outside commodities were mostly lower with both metals and energies coming under pressure while some softs posted modest rallies. DJIA futures were supported by stronger overseas equity markets while the U.S. dollar index also rallied. The Dow Jones Industrial Average closed 207.50 points higher Friday at 15,263.00. The overnight session saw the Dow Jones futures trade 55-points higher, indicating U.S. stocks could see continued buying interest Monday. The overnight crude oil market was $0.42 lower at $95.61 while Brent crude was $0.38 lower at $104.18. The August gold contract lost $4.20 to close at $1,378.80, while the U.S. dollar index lost 0.161 at 81.830. Soybeans at the Dalian Exchange were closed while Malaysian palm oil contracts were lower.