Harold House with the Kansas City Trade Group points out the markets will probably be quiet today ahead of the release of USDA June 1 Stocks report. Click below to hear more on the markets from KMZU’s Mandy Young and Harold House from the Kansas City Trade Group.
The hog pit should start out some higher, supported by short covering, impressive carcass value, and pre-H&P positioning. The cattle complex also seems geared to open on a firm basis thanks to spillover buying interest and technical friendliness.
Cattle: Cash: Steady Futures: 10-30 Higher Live Equiv. $135.81 – $0.17
Does the cash cattle tarde have a chance to get out of its Friday rut? We’ll find out over the next few hours. On one hand, packers seem short bought enough to turn aggressive shoppers as early as Thursday. Yet if they assume that beef cut-outs will continue to struggle in the weeks following July 4th, buyers may be reluctant to compromise leversge by acting hungry too early. For their part, feedlot managers should be somewhat encouraged by Wednesday’s board rally. Asking prices of $122 in the South and $195-$196 will probably reamain firm for at least one more day. Live and feeder futures should open moderately higher, supported by follow-through buying and technical considerations.
Hogs: Cash: Steady Futures: 10-30 Higher Lean Equiv. $118.98 + $1.45
Look for the cash hog market to open near steady Thursday morning. Although short-term slaughter plans appeard to be largely covered, but, because packers perceived that numbers will remain relatively tight for another 30 days or so, buyers are not likely to significantly lower spot bids and thereby risk the success of longer-term procurement. Expect lean futures to begin moderately higher, boosted by rising carcass value and the premium of the cash index.
Grain contracts posted quiet overnight sessions with trading ranges relatively tight once again. Most commodities were higher, providing support to grains, though gold continued to struggle following Wednesday’s meltdown.
The Dow Jones Industrial Average closed 149.83 points higher Thursday at 14,910.14. The overnight session saw the Dow Jones futures trade 22-points higher, indicating U.S. stocks could see continued buying interest Thursday. The overnight crude oil market was $0.25 higher at $95.75 while Brent crude was $0.45 higher at $102.11. The August gold contract lost $1.10 to close at $1,228.70 while the U.S. dollar index is 0.005 higher at 82.982. Soybeans at the Dalian Exchange were mostly lower while Malaysian palm oil contracts were lower.