Mixed trade is seen across the entire livestock market as traders have slowly backed away from early market support. There continues to be some uncertainty as to just how much additional market selling will be seen over the next couple hours with pressure in lean hog trade looking ahead to the release of the hogs and pigs report Thursday afternoon. Corn prices are lower in light trade. December corn futures are 2 cents lower. Stock markets are mixed in light trade. The Dow Jones is 48 points higher while Nasdaq is down 7 points.
LIVE CATTLE:
Narrow losses have swept through most live cattle futures as traders are holding price levels during the morning steady to 25 cents per cwt lower. This comes after moderate early gains were unable to hold. The lack of overall support in the market has more to do with extremely light trade volume than any recent shift in trader direction or overall market attitude. Cash cattle markets remain quiet mostly quiet through early morning, with just a few bids developing in the North at $167 to $169 per cwt seen until midday. At midday the report of 1000 head of cattle selling in Nebraska at $172 per cwt helped to bring some momentum to the market. Activity in the South remains quiet, which is expected to push the majority of cash cattle trade off until sometime Friday. Asking prices remain unchanged at $110 to $112 in the South and $172 to $174 in the North. At this point feedlot managers have very little incentive to change asking prices either, which will likely continue to stalemate until later in the week. Beef cut-outs at midday are mixed, $0.80 lower (select) and up $1.34 per cwt (choice) with moderate movement of 85 total loads reported (35 loads of choice cuts, 19 loads of select cuts, 15 loads of trimmings, 16 loads of ground beef).
FEEDER CATTLE:
Mixed trade is seen across all cattle markets with feeder cattle trade giving back firm early gains as prices are hovering from 45 cents lower to 30 cents higher at midday. The overall lack of support is impacting deferred contracts most as the light volume and lack of overall direction through the rest of the day is helping to maintain light gains in nearby contracts. Pressure in live cattle markets has also led to the pressure in deferred feeder cattle markets as traders remain focused on overall market uncertainty through the end of the week.
LEAN HOGS:
Moderate to firm pressure has developed across lean hog futures trade late Thursday morning as traders start to adjust to potential shifts possible following the hogs and pigs report. Even though the overall result of the report is not expected to shift trader interest significantly, the early expectations by most traders it to build some additional caution back into the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.14 at $47.33 per cwt with the range from $43.00 to $48.50 on 4,670 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.23 at $47.95 per cwt with the range from $46.00 to $48.50 on 2,300 head reported sold. The National Pork Plant Report reported 133 loads selling with prices gaining $0.03 per cwt. Lean hog index for 9/25 is at $56.98 down $0.68 with a projected two-day index of $56.25, down 0.73.
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