Livestock futures are mixed to mostly lower at midday following a strong push higher in the cattle complex. Ths is expected to draw additional trade volume near closing bell. Corn prices are lower in light trade. May corn futures are 5 cents lower. Stock markets are lower in light trade. The Dow Jones is 161 points lower while Nasdaq is down 51 points.
LIVE CATTLE:
Live cattle futures remain mixed in light trade nearby futures are holding 10 to 12 cent gains, with little indication that follow-through buyer support will be able to develop before the end of the session. The pressure in feeder cattle markets has sparked the underlying uncertainty in the rest of the live cattle market allowing traders to pull back from previous market moves. Cash markets remain quiet with bids still undeveloped. It is expected that bids may still remain quiet until midweek. Asking prices are around $130 in the South but slow to develop in the North. Beef cut-outs at midday are higher, $2.53 higher (select) and up $1.61 per cwt (choice) with light movement of 65 total loads reported (27 loads of choice cuts, 18 loads of select cuts, 6 loads of trimmings, 12 loads of ground beef).
FEEDER CATTLE:
The continued pressure through the complex has continued to develop through feeder cattle markets as markets have turned lower at midday. This has pushed prices 40 to 60 cents lower with position squaring taking the main indication Tuesday. Little additional shifts are likely to be seen before the rest of the session, which may push additional pressure into trade before closing bell.
LEAN HOGS:
Continued pressure has developed through lean hog trade with aggressive triple-digit losses seen in May and June futures through the morning Tuesday. This has added to increased pressure in all markets and created even more softness in the complex. Even though pork values have posted gains in the morning report, little support is seen in futures prices as traders are focusing on the potential of growing supplies and availability of hogs hitting the market over the next several weeks. Cash prices are lower at midday on the National Direct morning cash hog report. The weighted average price fell $0.22 at $55.30 per cwt with the range from $51.00 to $56.75 on 3,459 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.04 at $56.05 per cwt with the range from $54.00 to $56.75 on 557 head reported sold. The National Pork Plant Report reported 177 loads selling with prices gaining $1.90 per cwt. Lean hog index for 4/14 is at $62.59 down $0.60 with a projected two-day index of $62.12 down $0.47.
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