Monday Midday Livestock Market Summary

GENERAL COMMENTS:

Cattle trade has remained strong following aggressive triple digit support which flooded into the complex Monday morning. Even though gains have pulled significantly away from morning highs, prices are still holding onto sharp gains at midday in most live cattle and feeder cattle contracts. Lean hog contracts are steady to mostly higher in light trade. Corn prices are higher in light trade. May corn futures are 6 cents higher. Stock markets are higher in light trade. The Dow Jones is 41 points higher while Nasdaq is up 9 points.

LIVE CATTLE:

Despite backing away from strong triple-digit gains through morning trade, live cattle futures continue to move aggressively higher as traders focus on continued strong market support. The ability to draw commercial buyer support back into the complex during the month of April is setting up additional support, which could bring increased support to both cash markets and beef values through the end of the month. As April contracts hover near $121 per cwt, the overall tone of the market remains bullish even though trade volume through the entire week is expected to remain sluggish during the entire week. Cash markets are quiet following the light trade seen last week that developed late in the week at lower money. Cash cattle ended steady to $2 per cwt lower in the South and $2 to $4 per cwt lower in the North while overall movement remained underwhelming to say the least. Show lists are larger early Monday, which is no surprise given the light trade last week. Bids and asking prices are undeveloped and likely to remain quiet until midweek. Beef cut-outs at midday are mixed, $1.62 lower (select) and up $0.13 per cwt (choice) with light movement of 58 total loads reported (36 loads of choice cuts, 12 loads of select cuts, 4 loads of trimmings, 5 loads of ground beef).

FEEDER CATTLE:

Triple-digit gains continue to hold across feeder cattle futures although traders are pulling back from the aggressive $2 per cwt gains seen in the complex. This support is seen in the market as traders are looking for follow through support in spring and summer contracts as April contracts have moved back above $135 per cwt.

LEAN HOGS:

Lean hog futures have regained composure at midday with prices steady to slightly higher with the support in the cattle complex helping to draw buyer support back into the market. The underlying support across deferred contracts continue to build support in fall and winter contract months but are unable to bring unified buyer activity back to the table through the Monday trading session. This could spark some additional interest late in the day, but price ranges are likely to be narrow through the rest of the session. Cash prices are lower at midday on the National Direct morning cash hog report. The weighted average price fell $1.62 at $56.56 per cwt with the range from $54.00 to $58.50 on 2,907 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.83 at $56.89 per cwt with the range from $54.00 to $57.50 on 243 head reported sold. The National Pork Plant Report reported 123 loads selling with prices adding $1.57 per cwt. Lean hog index for 4/6 is at $65.73 down $0.43 with a projected two-day index of $65.12 down $0.61.