Firm buyer support is quickly returning to the cattle market through the second half of the morning with gains in live cattle nearing or exceeding $1 per cwt. Lean hog futures are mixed in a narrow range with very little short or long term direction being focused on through the morning. Corn prices are lower in light trade. December corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 69 points higher while Nasdaq is up 5 points.
LIVE CATTLE:
Strong midweek gains have quickly developed in live cattle futures at midday with nearby contracts holding gains from 70 cents to $1.10 per cwt as commercial support is quickly and aggressively moving into the market. This is bringing about even more market support through the entire cattle complex midweek. Cash cattle bids are starting to develop through the morning with prices at $106 live basis in both the North and South, while dressed bids at $168 are seen in the North. It is uncertain just how much additional buyer support will be seen before the end of the week. Activity on the Fed Cattle Exchange Auction Wednesday morning totaled 1,732 head, the FCE has sold 705 steers and heifers: 1-9 Day Delivery: 1,109 head total, 705 head sold, weighted average price $ 108.01; 1-17 Day Delivery: 501 head total, 79 head sold, weighted average price $ 108.00; 17-30 Day Delivery: 122 head total, no sales. Beef cut-outs at midday are mixed, $0.55 higher (select) and down $0.20 per cwt (choice) with light movement of 59 total loads reported (31 loads of choice cuts, 12 loads of select cuts, no loads of trimmings, 16 loads of ground beef).
FEEDER CATTLE:
Feeder cattle trade has wandered higher and lower in a moderate to wide range through the morning as traders gave back early support. But the overall pressure in the cattle market was unable to hold, with prices seen 17 to 70 cents per cwt higher at midday. The late day push higher could help to spark some additional buyer activity to move back into the complex. This may bring increased support to the entire market.
LEAN HOGS:
Early support in the lean hog futures complex has limited additional buyer activity to move back into the market. This is allowing prices to remain mixed in a very narrow trading range. Nearby futures are holding gains of 20 to 25 cents per cwt, while similar losses have developed in deferred contracts. Lack of market direction is expected to continue through the end of the session. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.60 at $50.27 per cwt with the range from $46.00 to $52.50 on 8,057 head reported sold. Cash prices higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price gained $0.94 at $51.58 per cwt with the range from $46.00 to $52.50 on 4,907 head reported sold. The National Pork Plant Report reported 196 loads selling with prices falling $0.04 per cwt. Lean hog index for 9/29 is at $54.29 down $0.55 with a projected two-day index of $54.39, up 0.10.
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