Mixed trade is seen in livestock futures is seen as cattle futures are shifting lower while firm gains have quickly developed in the lean hog complex. Strong gains have developed in the lean hog market following summer contracts moving through resistance levels of $80 per cwt. Pressure is seen in all nearby contracts as traders quickly back away from the early week gains. Corn prices are lower in light trade. July corn futures are 4 cents lower. Stock markets are mixed in light trade. The Dow Jones is 37 points higher while Nasdaq is down 4 points.
LIVE CATTLE:
Market pressure has developed at midday as nearby pressure is developing across the summer contract months. June and August futures are holding 60 to 90 cent losses despite light trade volume seen across the market. June futures remain at $123 per cwt as traders seem to be focused on position adjustments due to overall lack of volume in the market. Cash cattle activity is still silent with bids and asking prices undeveloped Tuesday at midday. The inability to bring about active interest before midweek at this point does very little with most trade likely to be seen in the last half of the week. With a short procurement week next week may limit the amount of cattle actually needing to be sold this week. Beef cut-outs at midday are mixed, $0.32 Higher (select) and down $1.42 per cwt (choice) with light movement of 66 total loads reported (35 loads of choice cuts, 20 loads of select cuts, 4 loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are mixed to mostly lower as May contracts are holding a 10 cent gain while the rest of the complex is under pressure following the recent softness developing in the live cattle market. August futures seem to be leading the downward trend, holding a 75 cent per cwt loss, as traders are starting to pull back from the sharp triple digit gains which developed Monday. Uncertainty surrounding support at $153 per cwt in summer feeder cattle futures could limit further market buyer interest and summer trade activity.
LEAN HOGS:
Lean hog futures have rallied higher as strong buyer support quickly moved back into the complex. This support is holding June and July futures above the $80 per cwt levels, which is sparking renewed underlying support in all nearby contracts. Additional fundamental support is also developing with firm cash gains seen in the morning report and a strong market gain in the pork cutout value. Additional pre-holiday gains may help to bring about increased market strength at the end of the month. If all summer contracts can close the month of May over $80 per cwt, increased technical support is likely to develop across the entire market which will likely reach through the next few weeks. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.21 at $70.71 per cwt with the range from $65.00 to $72.00 on 4,906 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price lost $1.02 at $69.80 per cwt with the range from $65.00 to $71.00 on 754 head reported sold. The National Pork Plant Report reported 242 loads selling with prices adding 1.78 per cwt. Lean hog index for 5/19 is at $75.89 up $0.34 with a projected two-day index of $75.94 down $0.05.
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