Mixed trade is seen through the market Wednesday morning. The inability to hold early gains has put some moderate pressure through the complex. This may limit additional support through the entire complex. Corn prices are higher in light trade. December corn futures are 2 cents per bushel higher. Stock markets are mixed in light trade. The Dow Jones is 75 points higher while Nasdaq is down 84 points.
LIVE CATTLE:
Buyers stepped into the live cattle futures complex early in the session Wednesday, but pressure in deferred contracts has quickly limited follow through during the morning. Even though nearby contracts are holding firm gains of 40 to 55 cents per cwt, there continues to be additional uncertainty in deferred contracts. This could limit additional market activity through the rest of the session. Cash cattle interest is slowly improving although the overall tone of the market remains sluggish. A few token bids have started to develop through the morning at $117 to $118 live and $188 dressed. Asking prices are showing more definition during the morning with live cattle listed at $121 and higher while dressed asking prices are seen from $192 to $195 through morning activity. The Fed Cattle Exchange Auction report today listed a total of 967 head, with 0 actually sold, 750 head listed as unsold, and 217 head listed as PO (Passed Offer). The state by state breakdown looks like this: KS 223 total head, with 0 head sold, 118 head unsold, 105 head listed as PO ($118.00); NE 507 total head, with 0 head sold, 507 head unsold, and 0 head listed as PO; TX 237 total head, with 0 head sold, 125 head unsold, and 112 head listed as PO ($117.00); CO -- no cattle reported; IA -- no cattle reported; other states -- no cattle reported. The delivery date/weighted averages breakdown is as listed: 1-9 day delivery: 865 head total, 0 head sold; 1-17 day delivery -- no cattle reported; 10-17 day delivery -- no cattle reported; 17-30 day delivery 102 head total, 0 head sold. Beef cut-outs at midday are lower, $0.17 lower (select) and down $1.66 per cwt (choice) with activity movement of 108 total loads reported (67 loads of choice cuts, 18 loads of select cuts, 9 loads of trimmings, 15 loads of ground beef).
FEEDER CATTLE:
Strong support has redeveloped in nearby feeder cattle futures with front month January prices holding a 70 cent per cwt gain. This underlying support has redeveloped following mixed trade activity through the morning. Very little long term direction is seen through the last couple of trading sessions with many traders trying to search for increased buyer activity, especially in nearby contracts.
LEAN HOGS:
Mixed trade activity is seen midday Wednesday following moderate to stronger buyer support early in the session. Very little has changed technically or fundamentally across the complex, although early buyer activity quickly backed away from the market Wednesday morning. This has left prices mixed in a moderate range from 50 cents lower to 40 cents higher as traders continue to search for increased market support. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.34 at $58.42 per cwt with the range from $52.00 to $60.00 on 2,946 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.62 at $59.03 per cwt with the range from $52.00 to $60.00 on 1,186 head reported sold. The National Pork Plant Report posted 164 loads selling with carcass values gaining $1.32 per cwt. Lean hog index for 11/27 is at $62.89 down $0.19 with a projected two-day index of $62.96, up $0.07.
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