Tuesday Midday Livestock Market Update

GENERAL COMMENTS: 

Cattle futures remain lower, but have pulled back from early losses with nearby feeder cattle futures under moderate to strong pressure. The sharp losses seen in front-month April live cattle trade may continue to limit long-term buyer support across the complex, but may not carry into fall contracts. Lean hog futures are holding mixed pressure, although the most aggressive losses are seen in nearby contracts. Corn prices are lower in light trade. May corn futures are 3 cents higher. Stock markets are higher in light trade. The Dow Jones is 3 points higher while Nasdaq is down 10 points.

LIVE CATTLE:

Moderate losses have developed at midday with traders looking for additional market support through the end of the session. Early triple-digit losses have been limited to losses moderate 60 to 70 cents with traders now focusing on a strong boxed beef market push, which is helping traders focus on the potential for market support and April live cattle trade moving back to $119 per cwt. This could bring additional focus back into the market and limit additional market direction later not only in the complex, but through the month of April. Cash cattle are untraded Tuesday morning, although bids have just started to develop in the North on a live basis at $124 per cwt. This may not start to bring additional activity into the complex over the next couple of days, but is starting the ball rolling. Asking prices are starting out at $130 live basis and $210 dressed basis. Beef cut-outs at midday are higher, $1.61 higher (select) and up $1.30 per cwt (choice) with light movement of 87 total loads reported (34 loads of choice cuts, 34 loads of select cuts, 4 loads of trimmings, 14 loads of ground beef).

FEEDER CATTLE:

Early losses in feeder cattle futures have now calmed slightly with triple-digit losses seen in all markets during the morning now only seen in front-month April futures. The strong support in beef values has not been able to bring some stability in the cattle market but it is uncertain if it will be enough to draw buyers back into the complex before the end of the session.

LEAN HOGS:

Firm pressure continues to develop in nearby lean hog futures trade as the focus remains on weakness in nearby market liquidation. April losses have added to the softness in the contracts and are trading at $64.40 per cwt. There continues to be additional pressure in June contracts. although the rest of the summer markets have not been able to stabilize at midday despite uncertainty in the rest of the trading session. There is additional market pressure through the rest of the complex, as traders are looking for direction from market fundamentals that may look for increased support from outside. Cash prices are unreported at midday on the National Direct morning cash hog report. Cash prices are unreported on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 192 loads selling with prices adding $1.41 per cwt. Lean hog index for 3/31 is at $67.07 down $0.71 with a projected two-day index of $67.07 down $0.52.