Harold House with the Kansas City Trade Group takes a look at how the markets are opening up here at mid-week.
To hear Kansas City Trade Group’s Harold House talk with KMZU’s Mandy Young click below:
The lean hog pit should start out moderately higher, supported by follow-through buying and the steady advance of the cash index. Look for the cattle complex to open on a mixed basis as traders cautiously position ahead of cash news.
Cattle: Cash: Steady Futures: Mixed Live Equiv. $140.63 + 0.47
Cattle buying interest should gradually assume greater definition this morning with preliminary bids around $123 in the South and $198-200 in the North. Asking prices should stary firm around $127-128 in the South and $205-plus in the North. Live and feeder futures seem likely to open in a narrow range with a general lack of price consistency.
Hogs: Cash: 0.50-$1 Higher Futures: 10-30 Higher Lean $97.96 + 0.21
Pork processors continue to be on an impressive spending spree in the face of a tightening supply of ready hogs. Midweek bids could be as much as a buck higher. Lean futures are likely to open moderately higher, bolstered by stronger cash and product sales.
Corn futures are 2 cents lower, soybeans 5 cents lower and wheat 4 cents lower at 6 a.m. Grains traded lower overnight with volume low once again. Commodities in general were under pressure as the U.S. dollar index continues to rally.
Much of the pressure in commodities has been tied to lowered growth expectations in China, while support in the U.S. dollar index continues to come from the weaker Japanese yen.