Harold House with the Kansas City Trade Group takes a look at how the markets are looking this morning.
To hear KMZU’s Mandy Young talk with Kansas City Trade Group’s Harold House, click below:
Expect live and feeder futures to begin on a mixed basis thanks to a combination of follow-through selling and short covering. On the other hand, lean hog contracts are set to open moderately higher, supported by profit taking and technical buying.
Cattle: Cash-$2 Lower Futures: mixed Live Equiv $137.66 -0.75
Tuesdays are typically quiet when it comes to trading cash cattle. While inactivity is probably the way to bet today, it’s possible that early week trade volume could develop if packers suddenly move to offer attractive basis opportunity.
Hogs: Cash Steady-$0.50 Higher Futures: $10-$30 Higher Lean $94.15 -0.17
The cash hog trade is set to commence this morning with steady/firm bids. Short-bought packers worked cautiously Monday, spending more only on a selective basis. Yet receipts at the end of the day were quite limited, and that limited success will probably necessitate another round of firm packer bids.
Grain contracts traded higher over the course of the overnight session, though gains were small in camparison to Monday’s sell-off. Some commercial buying was indicated by activity in the futures spreads, though this could have been skewed by low volume.
Outside markets were bearish with most commodities under pressure. Dow Jones Industrial Average futures rallied once again while the U.S. dollar index is showing a loss.