Harold House with the Kansas City Trade Group suggests it will be a quiet day in the markets Wednesday. Click below to hear more on the markets from KMZU’s Mandy Young and Harold House from the Kansas City Trade Group.
Live and feeder contracts should start out moderately lower, pressured by profit taking and pre-cash positioning. Look for the lean hog pit to open with mixed price action tied to spillover buying and profit taking.
Cattle: Cash: Steady-$2 Lower Futures: 10-30 Lower Live Equiv. $136.24 – $0.40
Beef packers inquiry could improve a bit Thursday morning, but we doubt that feedlot managers will be very tempted to give live bids around $116-117. Asking prices will be stated at $122-123 in the South and $193-plus in the North. Significant trade volume may not be generated until late Friday. Live and feeder contracts are likely to open moderately lower, checked by profit taking and long liquidation.
Hogs: Cash: Steady-$0.50 Higher Futures: Mixed Lean Equiv. $114.48 – $0.45
Expect the cash hog trade to be supported in the early rounds with steady/firm bids. Saturday kill plans should involve no more than 2,000 head. Lean futures are geared to start out on a mixed basis thanks to a combination of follow-through buying and profit taking.
Grains are lower early Thursday after posting big gains Wednesday. A statement released by the Federal Reserve Wednesday suggested the time for ending monetary easing may be getting closer and that is having a bearish effect on stocks and commodities early Thursday. The latest seven-day forecast from the National Weather Service expects an inch of rain or more in Iowa and heavier amounts in Minnesota, Wisconsin, and North Dakota.
Crude oil and gold are lower, influenced by Wednesday’s Federal Reserve Statement. The Dow Jones Industrial Average closed 206.04 points lower Wednesday at 15,112.19. The overnight session saw the Dow Jones futures trade 118-points lower early Thursday, indicating lower prices for U.S. stocks later in the morning. The overnight crude oil market was $2.24 lower at $96.24 while Brent crude was $2.04 lower at $104.08. The August gold contract lost $82.00 to close at $1,292.00 while the U.S. dollar index was 0.52 higher at 82.11. Soybeans at the Dalian Exchange were lower while Malaysian palm oil contracts were also lower.