Wednesday Early Calls
Harold House with the Kansas City Trade Group reminds us USDA will release the latest stocks report Friday. Click below to hear more on the markets from KMZU’s Mandy Young and Harold House from the Kansas City Trade Group.
Lean futures should begin on a mixed basis with nearbys regaining ground on deferreds. Live and feeder cattle contracts are likely to open modestly higher as traders slowly position ahead of cash news.
Cattle: Cash: Steady Futures: 10-30 Higher Live Equiv. $135.98 – $0.80
Cattle buyers could manage a few more bids here and there at midweek, but the developing of significant business would be a surprise. Some showlists are priced around $122 in the South and $195-$196 in the North. June cattle deliveries announced Tuesday were limited to 10 loads retendered at $1, all at Tulia. Live and feeder futures are likely to open modestly higher, supported by short covering and some suggestion of cash stability.
Hogs: Cash: Steady-$0.50 Higher Futures: Mixed Lean Equiv. $117.53 + $0.77
Cash hog buyers should start work Wednesday morning with steady/firm bids. Negotiated cash volume on Tuesday was once again quite limited. Saturday kill plans sound larger, but not by much. The total could be 12,000 to 15,000 head. Lean futures seem ready to start out on a mixed basis with summer contracts out performing deferreds.
Corn contracts traded within a 2-cent range during the CME Globex overnight session while wheat contracts saw only a 3-cent difference between highs and lows. Soybeans were under renewed pressure, albeit light, after rallying to start the week.
Outside commodities were under pressure as the U.S. dollar index moved higher once again. Dow Jones Industrial Average futures extended the rally in equities from Tuesday. The Dow Jones Industrial Average closed 100.75 points higher Wednesday at 14,760.31. The overnight session saw the Dow Jones futures trade 61-points higher, indicating U.S. stocks could see continued buying interest Wednesday. The overnight crude oil market was $0.52 lower at $94.80 while Brent crude was $0.07 lower at $101.19. **The August gold contract lost $48.60 to close at $1,226.50 while the U.S. dollar index was 0.225 higher at 82.806. Soybeans at the Dalian Exchange were mostly higher while Malaysian palm oil contracts were lower.