Strong market pressure continues to be seen in live cattle futures which is holding triple-digit losses in nearby contracts. The mixed moves in lean hog trade continues to put pressure on spot October lean hog futures, holding contract lows, as buyers try to step into other nearby contracts. Corn prices are lower in light trade. December corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 9 points higher while Nasdaq is up 2 points.
LIVE CATTLE:
Triple-digit losses are seen in October and December live cattle futures with traders focusing on the overall lack of buyer interest seen in nearby contract months. Although narrow gains have slowly developed in deferred futures, the overall weak tone of the market carried over from Monday's limit losses is keeping most buyers bearish. Cash cattle bids have started to slowly develop through the market with bids in the South seen at $104 per cwt while dressed bids in the North are seen at $169 per cwt. Asking prices are still hard to pinpoint in many areas, with cattle priced in the South expected to be around $110 per cwt and $175 and higher in the North. Beef cut-outs at midday are higher, $2.78 higher (select) and up $2.29 per cwt (choice) with light movement of 63 total loads reported (23 loads of choice cuts, 8 loads of select cuts, 23 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have stabilized slightly at midday with prices mixed in a wide range. Although firm pressure continues to hold in October through January contracts with triple-digit losses seen in October futures. Light buyer support is trickling back into the complex. This is allowing for increased buyer activity to slowly but steadily move into the complex, and instill a sense of stability through the market.
LEAN HOGS:
Lean hog futures remain mixed in a wide trading range Tuesday morning. The overall lack of support in front month October contracts continues to drive uncertainty into the complex with spot month prices holding a $1.10 per cwt loss, trading at $55.22 per cwt. October contracts have continued to post contract lows, leading to increased liquidation through the last week of September. December through June contracts are holding light to moderate gains, although very light activity is seen in the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.90 at $46.84 per cwt with the range from $43.00 to $48.75 on 3,519 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.72 at $47.10 per cwt with the range from $43.00 to $48.75 on 412 head reported sold. The National Pork Plant Report reported 182 loads selling with prices gaining $0.81 per cwt. Lean hog index for 9/22 is at $57.66 down $1.42 with a projected two-day index of $56.98, down 0.68.
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