Boxed beef prices should provide support to cattle prices, but cattle futures “are probably going to also be watching hogs,” said Mike Zuzolo of Commodity Analytics & Consulting. He noted China fears could hurt pork and soybean trade, and CME cattle futures have been building a big premium to cash.
“So far, beef production has not quite been as high as feared, and very strong consumer beef demand has been providing some underlying support,” The Hightower Report said. Analysts noted non-fed cattle slaughter is rising. They said August futures have support at $102.32 with resistance at $104.80 and $106.40.
Stocks: June E-mini S&Ps early this morning were up 0.31 percent at a 10-week high and European stocks were up 0.64 percent. Barchart.com said optimism in the U.S. economic outlook is supportive for stocks after last Friday’s U.S. payrolls report showed a larger-than-expected increase in non-farm payrolls and in hourly earnings and the ISM report showed U.S. manufacturing activity expanded at a faster pace in May. European stocks moved higher as political tensions in Italy eased. Asian stocks settled mostly higher.
Currencies: Early this morning the dollar index was down 0.37 percent, EUR/USD was up 0.53 percent at a one-week high as Italian political risks eased, and USD/JPY was down 0.02 percent.
Energy: July WTI crude oil prices this morning were down 43 cents (0.65 percent) at a seven-week low and July gasoline was down 1.16 percent at a 3 ½-week low.
This article provided by NewsEdge.