Tuesday Midday Livestock Market Summary

GENERAL COMMENTS: 

Cattle futures have gained additional buyer support with nearby live cattle futures leading the market higher and posting a strong gain. The ability to break through short term resistance levels is bringing additional support to the complex. Hog futures on the other hand remain moderately lower as traders continue to wander lower in the wide sideways range seen over the last couple of months. Corn prices are lower in light trade. May corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 187 points lower while Nasdaq is down 80 points.

LIVE CATTLE:

Strong morning buyer support has quickly flooded into live cattle futures trade with nearby contracts holding gains of 75 cents to $1 per cwt. August futures have quickly moved above $119 per cwt with prices at $119.77 at midday. Similarly June contracts have broken through resistance of $110 per cwt, as additional buyer support continues to slowly step into the market at these higher price levels. Cash cattle markets remain generally quiet Tuesday morning, although a few initial bids have developed in both the North and South. Southern bids are seen at $126 per cwt while Northern early bids are at $210 per cwt. This could spark additional support for an early week trade once again. Asking prices are generally undefined, but seen at $130 to $131 per cwt and $212 to $214 in the North. Beef cut-outs at midday are higher, $2.12 higher (select) and up $1.14 per cwt (choice) with light movement of 54 total loads reported (42 loads of choice cuts, 6 loads of select cuts, no loads of trimmings, 7 loads of ground beef).

FEEDER CATTLE:

Light buyer support is trickled back into the feeder cattle market with gains of 20 to 50 cents per cwt holding at midday. The support in feeder cattle trade remains well under the aggressive buyer activity in live cattle markets, and appears to be shifting the trend seen over the last couple of weeks from leading the upward market surge. Sluggish market activity remains supportive in nearby and deferred feeder cattle markets, but the momentum previously seen appears to be fading.

LEAN HOGS:

Moderate to firm pressure has developed through lean hog futures trade Tuesday morning. Nearby contracts are holding losses of 55 to 97 cents per cwt at midday following lack of commercial buying support stepping back into the complex. The early mixed trade seen in the complex was unable to draw additional buyer interest into the market. So far, April contracts continue to hold onto prices above $68 per cwt, although additional pressure could bring about follow-through liquidation. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.37 at $65.53 per cwt with the range from $60.00 to $67.50 on 5,313 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.39 at $67.03 per cwt with the range from $62.00 to $67.50 on 2,374 head reported sold. The National Pork Plant Report reported 196 loads selling with prices falling $0.36 per cwt. Lean hog index for 3/17 is at $71.61 down $0.13 with a projected two-day index of $71.48 down $0.13.