Friday Midday Livestock Market Update

GENERAL COMMENTS: 

Livestock futures have narrowed early market pressure seen Friday morning due to light trade activity. End-of-the-month and quarter position-taking has developed in cattle and hog markets, allowing for increased shifting markets. Corn prices are higher in light trade. May corn futures are 8 cents higher. Stock markets are mixed in light trade. The Dow Jones is 31 points lower while Nasdaq is up 8 points.

LIVE CATTLE:

Wide prices swings have narrowed significantly through the end of the morning with traders hovering the $120 price level. Trade volume remains extremely narrow Friday as traders continue to adjust for end-of-month and quarter positions as well as focus on fundamental supply shifts seen through the upcoming spring months. A break below the $120 per cwt level on the April contract, though, will create additional concerns in the upcoming weeks as traders are likely to focus on additional technical pressure associated with this move. Cash cattle trade has developed through the morning with activity likely finished in the South at $128 in both Kansas and Texas. This is generally $2 per cwt lower than last week's trade levels. At this point, cash trade is undeveloped in the North, but bids are seen at $205 to $206. It is expected that prices will be weaker than last week's market average by the time all is said and done, but overall, business is not inked at this point. Beef cut-outs at midday are lower, $0.65 lower (select) and down $2.13 per cwt (choice) with light movement of 76 total loads reported (28 loads of choice cuts, 16 loads of select cuts, 6 loads of trimmings, 26 loads of ground beef).

FEEDER CATTLE:

Lean hog futures have remained lightly traded through the entire session with strong losses seen through most of the morning. But the firm pressure has now been replaced by mixed trade as traders are squaring positions at the end of the month and quarter with nearby contracts now moving to positive price levels due to the lack of trade activity near market settlement. April contracts have moved back to $133 per cwt, and although this remains a far cry from the $136 levels seen last week, the thin trade may allow for buyers to move price levels in a wide range before the end of the month.

LEAN HOGS:

Lean hog futures remain weak at midday with nearby contracts holding moderate pressure following early losses. April contracts have continued to hang onto support above $65 per cwt through the end of the month with a 37-cent-per-cwt loss holding in front-month futures. Narrow single-digit gains are stepping into deferred contracts at midday, but this is unable to change the overall tone of the complex through the end of the session due to the light volume. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.06 at $60.77 per cwt with the range from $58.00 to $62.00 on 5,568 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 146 loads selling with prices adding $1.26 per cwt. Lean hog index for 3/29 is at $68.86 down $0.54 with a projected two-day index of $68.30 down $0.56.