Sharp losses have quickly developed across cattle and hog markets Thursday morning with triple-digit losses in nearby cattle futures leading the market lower. Concerns surrounding fundamental support holding through early November has caused traders to quickly adjust market activity. Corn prices are higher in light trade. December corn futures are 3 cents per bushel higher. Stock markets are mixed in light trade. The Dow Jones is 34 points higher while Nasdaq is down 7 points.
LIVE CATTLE:
Sharp losses have flooded through cattle markets early Thursday morning with December contracts holding losses of $2.25 per cwt at midday. The overall lack of support across the complex continues to spark widespread pressure in all nearby contracts. Concerns surrounding cash and beef values through the next couple weeks has quickly limited the aggressive tone seen across all cattle futures. Cash cattle interest is becoming more evident midday Thursday morning although trade is still developed at this point. Bids have developed in all areas with live bids seen at $115 to $116 per cwt in both the South and North while dressed bids are seen at $185 to $190 per cwt. Asking prices continue to remain strong despite the pressure in futures trade during the morning. Asking prices are seen at $126 live basis and $195 to $200 dressed basis. Active trade is likely to be delayed until Friday at this point. Beef cut-outs at midday are higher, $0.43 higher (select) and up $0.25 per cwt (choice) with active movement of 98 total loads reported (50 loads of choice cuts, 23 loads of select cuts, 10 loads of trimmings, 14 loads of ground beef).
FEEDER CATTLE:
Strong market pressure has continued to quickly erode through the morning Thursday with traders focusing on the inability to draw buyer interest back into the market following the sharp rally over the last week. Triple-digit losses are seen in all contracts with January futures leading the market lower with pressure holding at $3.15 per cwt. The overall lack of support in the complex continues to draw increased uncertainty as to the long term availability to keep commercial traders active over the near future.
LEAN HOGS:
Moderate pressure is holding through lean hog futures trade with December contracts holding losses of 90 cent to $1 per cwt midday. Other nearby contracts are holding losses of 20 to 60 cent per cwt losses as traders seem to focus on sluggish market activity. Very limited moves are expected to be seen through the rest of the session with very little long term direction developing given the pressure in cash hog trade through the last couple of days. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.67 at $63.19 per cwt with the range from $59.00 to $63.75 on 4,775 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.47 at $63.28 per cwt with the range from $59.00 to $63.75 on 395 head reported sold. The National Pork Plant Report posted 175 loads selling with cutout values increasing $1.06 per cwt. Lean hog index for 10/31 is at $69.30 up $0.22 with a projected two-day index of $69.42, up $0.12.
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