Firmness is seen through the morning Thursday in feeder cattle and lean hog trade. This is helping to spark some additional buyer support through the day. Although traders remain focused on aggressive losses that developed Wednesday, the main focus remains on upcoming holiday activity. Corn prices are higher in light trade. March corn futures are 2 cents per bushel higher. Stock markets are higher in light trade. The Dow Jones is 87 points higher while Nasdaq is up 35 points.
LIVE CATTLE:
Sluggish market moves are seen once again through the complex with prices mixed from 20 cents lower to 40 cents higher in light trade. The ability to move back off of triple-digit losses Wednesday has created a sense of renewed support in deferred contracts. This could prompt even more market activity through the rest of the week, even though trade volume is expected to be limited. Cash cattle business appears to be generally done for the week following late-day trade Wednesday. But packers continue to offer a few scattered bids steady with prices seen earlier in the week. Beef cut-outs at midday are mixed, $1.66 higher (select) and down $0.09 per cwt (choice) with light movement of 66 total loads reported (36 loads of choice cuts, 17 loads of select cuts, no loads of trimmings, 13 loads of ground beef).
FEEDER CATTLE:
Firm gains are seen with feeder cattle futures holding a moderate to strong rally Thursday. The aggressive market pressure seen over the last couple of trading sessions quickly pushed prices over $5 per cwt lower. Even though the market still remains weak, the ability to draw buyers back into the complex may help to build a sense of growing market stability going into the Christmas break. Contracts are 20 to 60 cents per cwt higher with light support developing in all contracts.
LEAN HOGS:
Light gains have trickled into the complex with nearby contracts holding gains of 20 to 40 cents in most contract months. The stability in the market is helping to draw commercial buyer activity back into the market following triple-digit gains seen midweek. Trade volume is expected to slow significantly over the near future, which may limit additional buyer activity over the near future. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.49 at $56.47 per cwt with the range from $51 to $57.20 on 3,380 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.90 at $54.62 per cwt with the range from $52.50 to $55 on 880 head reported sold. The National Pork Plant Report posted 153 loads selling with carcass values falling $0.55 per cwt. Lean hog index for 12/19 is at $62.38 down $0.33 with a projected two-day index of $62, down $0.38.
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