Follow-through support is stepping into the lean hog complex with nearby futures holding a 30 to 90 cent gain. This may help to draw buyer activity back into the complex early next week as well. Cattle markets remain mixed in sluggish end of the week trade. Corn prices are higher in light trade. July corn futures are 1 cent higher. Stock markets are mixed in light trade. The Dow Jones is 91 points higher while Nasdaq is down 36 points.
LIVE CATTLE:
Moderate pressure has moved into the complex with buyers quickly stepping out of the way at midday. This has allowed prices to erode in deferred contracts and slip to 40 to 90 cent losses even though volume remains extremely light. June and August contracts remain extremely lightly traded with narrow 20 to 25 cent losses developing at midday. The focus on firm-to-higher cash cattle trade developing at the end of the week is helping to bring some stability to the market. Light cash cattle trade has been seen in parts of Nebraska with live basis prices seen at $136. But the rest of the market remains undeveloped with bids becoming more active through late morning. Bids are seen from $134 to $135 live basis in most areas and $218 to $220 dressed basis. But this continues to be a world apart from current asking prices of $140 to $142 live bases and $121 and higher dressed. It could be late afternoon Friday before finishing touches of cattle trade is seen. Beef cut-outs at midday are higher, $0.01 higher (select) and up $0.38 per cwt (choice) with light movement of 88 total loads reported (47 loads of choice cuts, 18 loads of select cuts, 11 load of trimmings, 12 loads of ground beef).
FEEDER CATTLE:
Lean hog futures have turned mostly higher as early losses have lost momentum through the end of the morning with buyer support slowly but steadily moving into the deferred contracts. Nearby futures are holding narrow losses of 5-cent-to-20-cent losses based on continued pressure in live cattle markets. But the general tone of the feeder cattle market remains generally stable Friday. Overall the feeder cattle market remains weaker for the week giving very little indication that traders are willing to aggressively move back into the complex any time soon.
LEAN HOGS:
Strong gains have continued to hold through Friday morning, although prices have slowly backed away from session highs as traders continue to position markets for the weekend break. But with nearby summer contracts focused on setting nearby contract highs, the focus appears to be looking for even more fundamental and technical gains in the near future. There is likely to be even some additional support likely to develop over the near support as traders look for strong buying activity in the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.54 at $75.96 per cwt with the range from $74.50 to $78.25 on 2,875 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.29 at $77.55 per cwt with the range from $74.50 to $78.25 on 823 head reported sold. The National Pork Plant Report reported 151 loads selling with prices falling $0.23 per cwt. Lean hog index for 6/7 is at $79.41 up $0.61 with a projected two-day index of $80.02 up $0.61.
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