Light trade has been evident through the entire Wednesday morning across cattle and hog futures. There continues to be uncertainty as to how much follow-through support will develop after the Tuesday market rally. Early support in the complex has quickly vanished at midday, but prices remain in a narrowly mixed range in most contracts. Corn prices are steady to lower in light trade. December corn futures are 1/4 cent per bushel lower. Stock markets are lower in light trade. The Dow Jones is 190 points lower while Nasdaq is down 63 points.
LIVE CATTLE:
Futures trade has eroded moderately during late morning with prices jumping all over the place through much of the trading session. Prices are holding losses of 20 to 40 cents per cwt as the overall lack of support in the complex is more focused on underlying position taking rather than any additional market shifts developing through the middle of the week. Even though prices remain lower, there still remains a firm undertone holding in cattle trade based on the aggressive price gains which developed Tuesday. Cash cattle markets remain quiet Wednesday morning with a few initial bids starting to develop at $111 live basis through the South. This is not likely to get much attention at this point, but for a Wednesday is a place to start. Bids are still few and far between and may remain that way until sometime Thursday or later. Asking prices are seen at $115 and higher live basis in the South and most likely $178 and higher in the North. Although even these asking prices are still poorly defined. Activity on the Fed Cattle Exchange Auction posted a total of 897 head offered on the exchange although no sales were seen this week. The inability for buyers willingness to step up offering prices given the support in futures trade has kept sales quiet through the week in the FCE. Beef cut-outs at midday are mixed, $0.03 lower (select) and up $0.06 per cwt (choice) with active movement of 116 total loads reported (59 loads of choice cuts, 20 loads of select cuts, 14 loads of trimmings, 22 loads of ground beef).
FEEDER CATTLE:
The feeder cattle futures have quickly backed away from the strong morning buyer support that moved back into the complex Wednesday. Trade remains stuck in a narrowly mixed trade range from 30 cents lower to 15 cents per cwt higher as very little direction is seen in either live cattle futures trade or fundamental market moves through the morning. Traders seem to be willing to take a deep breath midweek as they look for additional longer term direction through the complex.
LEAN HOGS:
Sluggish activity has been seen in lean hog futures trade Wednesday morning. But this lack of movement and price direction is following the general trend of market activity seen in all livestock markets. There continues to be increased market pressure in deferred futures with prices holding losses of 5 to 20 cents per cwt. But the nearby support is outweighing this lack of buying interest, even though prices have been sluggish. Gains at midday are limited to 2 to 30 cents per cwt as firm cash market moves are not even enough to spark active interest to move back into the complex. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.29 at $65.50 per cwt with the range from $63.00 to $66.50 on 9,022 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.20 at $65. 64 per cwt with the range from $63.00 to $66.50 on 5,832 head reported sold. The National Pork Plant Report reported 185 loads selling with prices falling $0.21 per cwt. Lean hog index for 10/23 is at $66.10 up $0.87 with a projected two-day index of $67.32, up $1.22.
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