Advice: Livestock producers: Extend feed coverage... We advise livestock producers to cover the remaining half of October, November and December for soymeal needs in the cash market. Meal futures have fell near contract lows and the recent news-driven selloff has pushed prices to value levels. You now have full coverage in cash through December covered in cash.
Hogs
Price action: October lean hogs fell $1.10 to $99.425, nearer the daily low.
Fundamental analysis: The lean hog futures market today saw routine profit-taking after prices hit a contract high on Tuesday.
The latest CME lean hog index is down 8 cents at $104.90. Thursday’s projected cash hog index is up 10 cents at $105.00. Today’s national direct 5-day rolling average cash hog price quote is $105.47. The noon report today showed pork cutout value down 71 cents to $111.97, led by losses in picnics. Movement at midday was good at 194.64 loads.
Hog futures traders are awaiting Thursday’s USDA quarterly Hogs and Pigs Report.
Technical analysis: October lean hog futures bulls still have the solid overall near-term technical advantage. A choppy, 2.5-month-old price uptrend remains in place on the daily bar chart. The next upside price objective for the hog bulls is to close October futures prices above solid chart resistance at $102.00. The next downside price objective for the bears is closing prices below solid technical support at $97.00. First resistance is seen at the contract high of $100.575 and then at $101.00. First support is seen at today’s low of $99.025 and then at this week’s low of $97.90
What to do: Get current with feed coverage.
Hedgers: You are carrying all production risk in the cash market.
Feed needs: NEW ADVICE: Cover the remaining half of October, November and December soymeal needs in the cash market. For corn, you now have all needs through October covered in the cash market.
Advice: Livestock producers: Extend feed coverage... We advise livestock producers to cover the remaining half of October, November and December for soymeal needs in the cash market. Meal futures have fell near contract lows and the recent news-driven selloff has pushed prices to value levels. You now have full coverage in cash through December covered in cash.
Cattle
Price action: October live cattle fell $1.55 to $234.05, near the daily low. November feeder cattle lost $2.95 to $357.80 and nearer the daily low.
Fundamental analysis: The live and feeder cattle futures bulls saw corrective selling pressure and profit-taking from the shorter-term futures traders today, following recent gains. Weakening cash cattle and fresh beef markets at mid-week were also bearish for futures prices.
USDA today reported that so far this week very light cash cattle trading has occurred at an average price of $233.00. Last week’s cash cattle trading average price was $237.51. The noon report today showed wholesale boxed beef cutout values down, with Choice-grade losing $1.63 to $379.17, while Select fell $2.19 to $357.71. Movement at midday was very good at 121 loads. The Choice-Select spread is presently $21.46.
Technical analysis: The live and feeder cattle bulls still have the overall near-term technical advantage. The next upside price objective for the live cattle bulls is to close October futures above resistance at the contract high of $242.075. The next downside technical objective for the bears is closing prices below solid technical support at the September low of $228.80. First resistance is seen at today’s high of $235.775 and then at this week’s high of $237.90. First support is seen at this week’s low of $233.00 and then at $232.00.
The next upside price objective for the feeder bulls is to close November futures prices above technical resistance at the contract high of $367.65. The next downside price objective for the bears is to close prices below solid technical support at the September low of $342.125. First resistance is seen at today’s high of $361.625 and then at this week’s high of $363.775. First support is seen at $356.00 and then at $354.00.
What to do: Get current with feed coverage. Carry all production risk in the cash market for now.
Hedgers: Carry all production risk in the cash market for now.
Feed needs: NEW ADVICE: Cover the remaining half of October, November and December soymeal needs in the cash market. For soymeal, you have full coverage in cash through July, with half of your needs for August, September, October, November and December covered in cash. For corn, you have all needs through August covered in the cash market, with half of your needs for September and October covered in cash.