Sharp gains in cattle futures seen midday have created a welcome surprise to the market which started out with a defensive tone. This lack of support through the complex continues to focus on the potential for increased market activity through the rest of the session with the potential of hitting trading limits before closing bell. Corn prices are higher in light trade. July corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 41 points higher while Nasdaq is up 2 points.
LIVE CATTLE:
Triple-digit gains continue to hold in live cattle market following the morning surge in feeder cattle trade which is helping to pull live cattle futures higher at midday. The potential for limit higher trade activity is starting to develop following what seemed to be a bearish start and created some concerns that increased cattle placements would weaken the overall long term outlook of the market for the rest of the summer. August futures currently lead the complex higher with gains of $2.60 per cwt as traders try to keep up with sharp gains in feeder cattle markets. Cash cattle activity is undeveloped with show list distribution and inventory taking the main order of business of the day. Bids and asking prices may be delayed until midweek. Beef cut-outs at midday are higher, $2.08 higher (select) and up $0.03 per cwt (choice) with light movement of 71 total loads reported (38 loads of choice cuts, 10 loads of select cuts, 16 load of trimmings, 7 loads of ground beef).
Feeder Cattle:
Aggressive buyer support has taken over at midday across feeder cattle trade with August futures holding a $3 per cwt rally. This move counters early morning losses that focused on the bearish cattle on feed report and increased placement levels seen on the Friday report. But the inability for traders to continue to hold the market lower has quickly allowed a flurry of buyer activity to move back into the market and active triple digit support to move back into the complex. It is uncertain just how much long-term support will develop through the complex as traders will continue to focus on feeder cattle buyer interest through the day.
LEAN HOGS:
Overall lack of trade volume has been seen though most of the morning with firm gains holding across the lean hog complex. July futures continue to be only contract to hold triple digit gains. Even though front-month futures have backed away from session highs, the ability to focus on bullish fundamental support continues to keep commercial traders active in the market as well as looking for increased market support through the end of the month. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.95 at $84.85 per cwt with the range from $82.00 to $86.00 on 3,045 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $2.77 at $83.57 per cwt with the range from $82.00 to $86.00 on 35 head reported sold. The National Pork Plant Report reported 127 loads selling with prices adding $0.12 per cwt. Lean hog index for 6/22 is at $90.17 up $0.87 with a projected two-day index of $90.62 up $0.45.
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