Firm buyer support is seen across livestock trade Thursday as traders focus on aggressive nearby gains in the lean hog complex. This support in July lean hog futures continues to set contract highs with the focus on aggressive pork cutout values and firming cash markets leading traders to push nearby futures higher. Cattle trade has moved higher, although narrow trading ranges have held Thursday, which is a shift from the wild triple digit swings seen earlier in the week. Corn prices are higher in light trade. July corn futures are 3 cents higher. Stock markets are lower in light trade. The Dow Jones is 162 points lower while Nasdaq is down 99 points.
LIVE CATTLE:
Early mixed futures trade has been replaced by firming buyer support that has moved into the live cattle futures. June futures remain lightly traded with 12 cent gains, while August through December contracts have gained additional strong support with buyers quickly moving back into the market. This pushed prices 50 to 80 cents per cwt higher as traders rallied higher midday focusing on the potential to move away from support levels set last week. The ability to create a summer low through the middle of June and draw additional trade interest back into the complex through the next several weeks. Cash cattle is starting to develop with light activity starting to be seen in the South with prices seen at $119. This is generally $2 per cwt lower than last week's price levels, although at this point, trade remains extremely light and not enough volume to establish a full market trend. Bids are redeveloping in the North at $118 to $120 live and $188 to $190 dressed basis. These bids are steady to weak with where light trade was seen Wednesday. More active trade is expected to develop either late Thursday afternoon, or Friday. Even though both sides would desire to wrap things up early before the holiday weekend, active trade may push into late Friday. Beef cut-outs at midday are lower, $1.35 lower (select) and down $2.16 per cwt (choice) with light movement of 77 total loads reported (44 loads of choice cuts, 18 loads of select cuts, 1 load of trimmings, 14 loads of ground beef).
FEEDER CATTLE:
Lean hog futures have moved higher in a narrow range after traders have allowed prices to bounce higher and lower through the morning. Very little direction is being seen through the complex Thursday, which is a significant shift from the wide ranging triple-digit price swings seen each of the market sessions earlier this week. But the ability for markets to close higher midweek and hold these recent gains, is showing a renewed sense of market stability in both live cattle and feeder cattle trade, which could bring additional commercial support back to the market.
LEAN HOGS:
Strong nearby gains seen in July and August futures contracts have helped set the tone for the entire complex Thursday as firm commercial support has swept through all contract, replacing early pressure in deferred contracts. This lack of pressure through the market is offsetting the upcoming hogs and pigs report which is expected to post increased hog numbers and general expansionary tones through the market. The focus in nearby summer contracts continues to be driven by the aggressive fundamental support seen over the last few weeks as traders focus on firm cash market support and aggressive recent moves in pork values. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.43 at $84.12 per cwt with the range from $81.00 to $84.23 on 2,496 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report reported 101 loads selling with prices falling $1.05 per cwt. Lean hog index for 6/26 is at $91.10 up $0.48 with a projected two-day index of $91.50 up $0.40.
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