There’s not much change in the markets Tuesday morning. Harold House with the Kansas City Trade Group talks about USDA’s Crop Progress and Condition report that was released Monday afternoon.
Click below to listen to KMZU’s Mandy Young talk with Harold House.
Live and feeder cattle contracts are set to open significantly higher, supported by follow-through buying and impressive corn planting progress. Lean hog futures should start out on a firm basis tied to the growing premium of the cash market.
Cattle: Cash: Steady-$1 Lower Futures: 50-100 Higher Live Equiv. $142.09 + 0.47
The cash cattle is not likely to get off the ground today with few packers willing to field even preliminary bids. Most feedlot managers should also remain tight-lipped. Generally speaking we assume asking prices should be around $127 in the South and $203-205 in the North. Significant trade volume will probably be delayed until the second half of the week. Live and feeder contracts should open moderately higher, supported by residual buying and confirmation of aggressive corn planting progress.
Hogs: Cash: Steady-$0.50 Lower Futures: 10-30 Higher Lean Equiv. $100.39 – 0.10
Hog buyers are expected to start work this morning with another round of higher bids. Market ready numbers continue to tighten, forcing packer spending regardless of the relative health of the dressed pork trade. While carcass value has been on a decent roll this month, it’s been hard-pressed to keep up with the rising cost of live inventory. Accordingly, it’s probably not surprising that Saturday kill plans may be close to zero. Lean futures are expected to begin on a firm basis thanks to spillover buying and likely cash strength.
Soybeans pushed higher over the course of the overnight session, but were unable to hold gains through early Tuesday morning due to strong spillover pressure from the other grains and outside commodities.
The U.S. dollar index renewed its rally, while Dow Jones Industrial Average futures posted small losses.