Livestock futures have quickly moved from sluggish moving markets to a quickly moving aggressive trading market Tuesday morning. This surge in price in both cattle and hog markets have posted aggressive buying support in nearby contracts. Corn prices are lower in light trade. December corn futures are 3/4 cent lower. Stock markets are mixed in light trade. The Dow Jones is 44 points higher while Nasdaq is down 4 point.
LIVE CATTLE:
Aggressive buyer support has moved into nearby contracts with October and December contracts moving gains above $2 per cwt. This could move gains near or to limit gains at closing bell, which could quickly change the direction of the market through the end of the week. With the recent shift of direction, October futures are now trading near $114 per cwt with other nearby contracts trading above $120 per cwt. This ability to bring additional commercial and investment traders back to the table has helped to instill additional attention from all areas. Cash cattle markets remain undeveloped Tuesday morning with bids and asking prices unavailable and likely to remain that way until midweek. Active trade will likely not be seen until late in the week. Beef cut-outs at midday are higher, $1.59 higher (select) and up $0.40 per cwt (choice) with light movement of 54 total loads reported (26 loads of choice cuts, 13 loads of select cuts, 7 loads of trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Triple-digit gains have build through all nearby feeder cattle futures with October through April contracts holding $1.20 to $1.40 per cwt gains at midday. The reaction to live cattle futures holding gains over $2 per cwt gains is helping to spark additional strong commercial support in feeder cattle markets. There may be some additional long term buying interest moving into the complex. Through the end of the session.
LEAN HOGS:
Strong gains have developed across lean hog futures with October futures leading the market higher with triple-digit gains. This has helped to draw buyers back to the complex. There continues to be increased buyer support back into the market with firm support seen in all winter and spring contracts. Although morning cash markets have posted pressure, the firm futures trade continues to hold the expectation that buyer support may build additional fundamental support across the complex through the end of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.10 at $53.33 per cwt with the range from $52.00 to $54.50 on 3,730 head reported sold. Cash prices lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.33 at $54.09 per cwt with the range from $52.00 to $54.50 on 1,504 head reported sold. The National Pork Plant Report reported 237 loads selling with prices adding $0.82 per cwt. Lean hog index for 10/6 is at $56.42 up $0.65 with a projected two-day index of $57.11, up 0.69.
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