Thursday Midday Livestock Market Summary

GENERAL COMMENTS: 

Firm support is seen in livestock markets have quickly developed at midday following what started out as extremely lackluster market activity. This market rally has been driven by the triple digit rally in feeder cattle markets. Lean hog futures have quickly started to move higher with firm support developing in summer contracts. Corn prices are lower in light trade. May corn futures are 4 cents lower. Stock markets are higher in light trade. The Dow Jones is 36 points higher while Nasdaq is up 9 points.

LIVE CATTLE:

Light to moderate buyer support is seen at midday with stable price moves seen across the live cattle complex Thursday morning. April through August futures are holding 50 to 60 cent gains as traders slowly moved back into the complex. April futures are attempting to move back toward $119 per cwt with beef market support focusing on summer market demand despite the uncertainty in the cash markets. Cash cattle remain quiet with bids in the North seen at $122 on a live basis and $200 dressed basis, with no bids developing in the South Thursday morning. Asking prices are currently at $128 to $130 in the South and $205 and higher in the North. But at this point, the gap between those these two levels seems massive. Beef cut-outs at midday are mixed, $0.60 higher (select) and down $1.06 per cwt (choice) with light movement of 67 total loads reported (40 loads of choice cuts, 20 loads of select cuts, no loads of trimmings, 7 loads of ground beef).

FEEDER CATTLE:

After remaining sluggish during the entire morning, strong buyer support is seen across the feeder cattle trade. This is helping to push triple digit gains in nearby contracts. April through August futures are posting $1 to $1.20 per cwt gains. With April contracts now trading above $131 per cwt, it appears that some momentum may be rekindled in the market, although at this point, there may be some uncertainty as to just how much long term support will develop following the recent choppy market shifts.

LEAN HOGS:

Lackluster trade slowly developed early in the session, based on stability seen midweek across the complex. This buyer support continued to develop during the morning and has brought additional price support back into the market. Summer contracts are now leading the market higher with June and July futures holding prices higher with markets posting 70 to 90 cent gains. This may continue to post firm market support through the end of the Thursday session as additional buyer activity is moving from the sidelines. Cash prices are lower at midday on the National Direct morning cash hog report. The weighted average price fell $1.33 at $58.51 per cwt with the range from $54.00 to $59.00 on 2,840 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 139 loads selling with prices adding $0.97 per cwt. Lean hog index for 4/4 is at $66.60 down $0.47 with a projected two-day index of $66.15 down $0.45.