Cattle futures remain sharply lower with triple-digit losses quickly developing Tuesday morning. This lack of support in the complex has added to the market pressure. Hog markets are lightly traded with narrow moves limiting activity and keeping volume light. Corn prices are higher in light trade. July corn futures are 2 cents higher. Stock markets are lower in light trade. The Dow Jones is 21 points lower while Nasdaq is down 51 points.
LIVE CATTLE:
Sharp losses are seen in cattle trade with triple-digit losses seen in all live cattle markets. Even though live cattle futures are posting losses from $2 to $2.70 per cwt losses, the expanded trading limits available due to Monday's gains could create even wider market swings before the end of the session. There continues to be some significant market shifts available to the complex and this could shift the tone of the market through the end of the week. Cash cattle markets remain generally quiet Tuesday with a few bids trickling into Iowa at $119 live basis through the morning. Asking prices are undeveloped in all areas at this point. It is expected that additional bids will develop either later in the day or earlier Wednesday, but active trade may not be seen until sometime Thursday or Friday. Beef cut-outs at midday are lower, $1.40 lower (select) and down $2.36 per cwt (choice) with light movement of 60 total loads reported (25 loads of choice cuts, 20 loads of select cuts, 8 load of trimmings, 7 loads of ground beef).
Feeder Cattle:
Sharp losses have continued to develop through feeder cattle markets which is limiting overall support through the entire market. With expanded trading limits during the session, traders remain concerned that traders will have the opportunity to extend losses beyond the $4.50 per cwt gains seen Monday and create even more bearish selling pressure as the week continues. This could not only create added volatility into the market but uncertainty through the entire cattle complex.
LEAN HOGS:
Narrow trading ranges are holding in lean hog futures with the hog complex trading between 20 cents lower and 30 cents higher at midday. The lack of direction in the complex given the aggressive losses across the cattle complex appears to be focusing on firm fundamental support still able to develop across the complex. This may help to draw buyer support back into the complex through the rest of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.79 at $84.99 per cwt with the range from $82.00 to $86.00 on 3,632 head reported sold. Cash prices are unreported on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report reported 167 loads selling with prices adding $1.23 per cwt. Lean hog index for 6/23 is at $90.62 up $0.45 with a projected two-day index of $91.10 up $0.48.
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