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Home Daily Market Update  AFTERNOON MARKET UPDATE; Sept. 9
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Tuesday, September 9, 2014

AFTERNOON MARKET UPDATE; Sept. 9

by DTN

AFTERNOON LIVESTOCK COMMENTS
Rick Kment, DTN Livestock Analyst

GENERAL COMMENTS: According to the closing report, the Iowa hog base is $1.75 higher compared with the Prior Day settlement ($96.00-$102.00, weighted average $101.30). Corn futures continued their march down, with September closing 3 cents lower, December and March 4 cents lower.

LIVE CATTLE: Futures closed higher, up 35 to 142. Strong buyer support slowly developed through the trading session, and interest remained steady. The combination of traders expecting higher cash cattle prices and strong gains in the feeder cattle futures market encouraged more buying. Traders are looking for firmer boxed beef values over the near future. Front-month October futures are having a difficult time breaching the $160 per cwt level over the last couple of trading sessions. If this continues, it could limit the long-term support in all live cattle futures. Beef cut-outs: sharply mixed (choice, $251.08, down $0.31; select, $238.68, up $0.84) with light to moderate demand and offerings (66 loads of choice cuts, 63 loads of select, 34 loads of trimmings, 21 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL: Steady to $3 higher. With bids still undeveloped and aggressive asking prices holding strong going into midweek, it is likely that it may be the end of the week before active trade is seen. Packers are expected to need to see additional support in boxed beef values in order to improve margins over the short term, or they will try to wait out the market as long as possible. Feed yard managers at the same time remain as aggressive as ever given the short-bought status of packers and recent price surges.

FEEDER CATTLE: Futures closed higher, up 130 to 207. The combination of aggressive gains in live cattle futures, lower grain markets and sharply higher cash feeder cattle futures led to another surge in price levels through the entire complex. The push to contract highs through all nearby contract months could bring additional aggressive buying at midweek. Feeder cattle futures will be focusing on additional direction from grain markets and the need to sustain additional support through the live cattle complex. 09/08 CME Feeder cash index: 225.95, up .54.

 
 


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Myself and entire family are horse people. from the kids loving their rodeo horses to mom and dad needing their ranch horses... Best supporting sentence of this entire article: “Horses deserve better than to be abandoned, starved, or transported long distances in overcrowded trucks to slaughter in foreign countries”. Since auction yards in Nor Cal have stopped taking horses we have had a disgusting rise in abandoned horses dumped off on back roads, which are sick and hungry. Many get hit, which results in people getting hurt. Not Okay!! If people could haul the horse to slaughter before the health declines, that meat could feed people, or animals rather than cause the horse and people to suffer.
 
Think outside of the pen. The market is moving away from corn and grain by the end consumer. They are being educated to grass finished and the margins are better there using grass or Alfalfa. The key has always been water for the producer to produce hay and breed cattle that gain efficiently on forage.
 
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