Aggressive buyer support has flooded into live cattle futures with limit gains developing in both live cattle and feeder cattle markets. With April live cattle futures expiring Thursday, limitless trade activity has pushed markets $4.67 per cwt at midday. Lean hog futures have also posted strong triple-digit gains. Corn prices are mixed to higher in light trade. May corn futures are 2 cents higher. Stock markets are higher in light trade. The Dow Jones is 22 points higher while Nasdaq is up 23 points.
LIVE CATTLE:
Live cattle futures have rallied sharply higher with limit gains quickly exploding into the market. April live cattle futures expire at noon Thursday, which is creating limitless trade in front month futures, allowing contracts to move futures to post $4.67 per cwt gains. June through October contracts are locked in limit highs of $3 per cwt gains as traders are looking for strong market support through the end of the month. Cash cattle activity has become light to moderate at midday given the strength in the futures trade through the morning. Live business in the South is seen from $135 to $137, which is generally $4 to $6 per cwt higher that last week's price levels. Prices in the North are listed around $215 per cwt. This is on average $6 to $7 per cwt higher than last week's level. Asking prices are now increasing on cattle still left on show lists, but the tone of the market could be set. It is likely that the bulk of remaining business may be delayed until Friday. Asking prices on remaining cattle are seen at $220 dressed basis and $137 to $138 live basis. Beef cut-outs at midday are higher, $1.30 higher (select) and up $0.12 per cwt (choice) with moderate movement of 71 total loads reported (25 loads of choice cuts, 16 loads of select cuts, 20 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have surged to limit higher gains in all but front month April contracts. The aggressive move higher comes following the lackluster early market interest seen Thursday which gave way to aggressive cash market trade in the live cattle markets. A close at these price levels would create expanded trading limits in the feeder cattle markets and would add to the already volatile cattle markets through the end of the month.
LEAN HOGS:
Strong triple-digit gains have flooded into lean hog futures Thursday with nearby support gaining momentum as May contracts remain lightly traded due to the light open interest but holding prices at $67 per cwt. The June contract remains the main focus at $73 per cwt with trade $2.55 per cwt higher and gaining additional buyer support through the end of the week. This is drawing additional trade activity through the rest of the complex. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.55 at $55.38 per cwt with the range from $50.00 to $57.00 on 2,710 head reported sold. The National Pork Plant Report reported 155 loads selling with prices added $0.55 per cwt. Lean hog index for 4/25 is at $59.93 down $0.23 with a projected two-day index of $59.71 down $0.22.
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