Strong gains in feeder cattle futures continue to rally Monday morning. This may help to spark increased buyer support through the entire cattle market. Lean hog futures remain under light to moderate pressure, but the overall tone of the market remains relatively stable. Corn prices are mixed in light trade. July corn futures are 1/4 cent lower. Stock markets are lower in light trade. The Dow Jones is 2 points lower while Nasdaq is down 4 points.
LIVE CATTLE:
Live cattle futures are mixed in a narrow trading range with front month June contracts holding an 85 cent rally despite the lack of strong support through the rest of the market. The rest of the complex has shown very little interest to do very little in the terms of any market movement or show price direction with prices unable to break away from nearly unchanged. The ability to draw commercial buyers back to the table through the end of the session may spark another round of wide activity through the end of the day, leading to additional strong gains. Cash cattle are quiet early Monday morning with bids and asking prices undeveloped and likely will remain that way over the next couple of days. Show lists are smaller in all areas except Texas in the initial release, which will likely indicate overall lighter number of cattle on offered for the week. Overall trade will not likely be seen until the second half of the week. Beef cut-outs at midday are higher, $1.82 higher (select) and up $2.18 per cwt (choice) with light movement of 59 total loads reported (32 loads of choice cuts, 16 loads of select cuts, 6 loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Triple-digit gains have developed through nearly all contracts Monday as aggressive commercial buying moved back into feeder cattle trade. The move higher in deferred futures is driving buyer support back into the complex with gains of $2 per cwt or more in 2018 contract months. This is helping to bring about even more support through the complex and renewed strength from both commercial and investment buying activity. The firmness in live cattle trade is likely to keep buyers active even though trade volume may be sluggish during most of the week.
LEAN HOGS:
Light trade is seen Monday morning with prices under pressure through most of the morning. Although significant losses are not seen in any one contract, the overall lack of buyer support is evident. There remains the focus of strong fundamental support with summer contracts holding above $81 per cwt as traders continue to balance fundamental and technical strength in the market during early June. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price gained $1.56 at $75.85 per cwt with the range from $70.00 to $76.00 on 2,630 head reported sold. Cash prices are higher on the National Direct morning cash hog report. The weighted average price gained $0.42 at $73.39 per cwt with the range from $70.00 to $76.00 on 5,917 head reported sold. The National Pork Plant Report reported 113 loads selling with prices adding 1.19 per cwt. Lean hog index for 6/1 is at $77.34 up $0.55 with a projected two-day index of $76.90 up $0.56.
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