Firm gains have developed in cattle trade Wednesday morning with follow through support holding prices higher after early week surges. Weakness is seen in lean hog futures as traders remain focused on position taking. Corn prices are higher in light trade. March corn futures are 1 cent higher Wednesday. Stock markets are higher in light trade. The Dow Jones is 21 points higher while Nasdaq is up 2 points.
LIVE CATTLE:
Firm gains are seen in live cattle trade with buyers focusing on the support moving back into feeder cattle trade earlier in the week. The potential to keep prices wll off of recent market lows through the end of the year has helped to not only add to trade activity, but it sparked some interest from commercial and investment buyers at the end of the year. A strong move higher this week is likely to add to early support and could bring buyers back during January. Cash cattle markets remain quiet with just a few asking prices developing in the South through the morning. Asking prices are seen at $122 to $125 per cwt, although bids are undeveloped and likely to remain that way until sometime Thursday. Active trade may not be seen until the end of the week. The Fed Cattle Exchange Auction today listed a total of 637 head, with 0 actually sold, 637 head listed as unsold, and 0 head listed as PO (Passed Offer). The state by state breakdown looks like this: KS 160 total head, with 0 head sold, 160 head unsold, 0 head listed as PO; NE 266 total head, with 0 head sold, 266 head unsold, and 0 head listed as PO; TX 142 total head, with 0 head sold, 142 head unsold, and 0 head listed as PO; CO no cattle reported; IA no cattle reported; other states (OK) 69 total head, with 0 head sold, 69 head unsold, and 0 head listed as PO. The delivery date/weighted averages breakdown is as listed: 1-9 day delivery: 637 head total, 0 head sold; 1-17 day delivery no cattle reported; 10-17 day delivery no cattle reported; 17-30 day delivery no cattle reported. Beef cut-outs at midday are mixed, $0.26 lower (select) and up $0.15 per cwt (choice) with light movement of 74 total loads reported (46 loads of choice cuts, 17 loads of select cuts, no loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Firm gains are seen Wednesday in cattle trade with feeder cattle markets leading the upward market charge at midday. This is helping to draw additional trade activity back to the table through the week. Front month spot contracts are holding gains of 70 cents per cwt as traders continue to focus on increased buyer support in nearby trade. But the overall lack of strong volume seen through the week may limit additional market shifts during the rest of the trading session.
LEAN HOGS:
Losses continue to develop across the lean hog complex Wednesday morning despite the early support that quickly moved into the complex. After posting short term highs in several nearby contracts early in the week, the focus on the market is not turning to position taking as traders try to adjust markets lower. Front month February futures are hardest hit, with a 95 cent per cwt with prices seen at $70.60 per cwt. Light trade is expected to be seen through the end of the session, but the direction of the market is likely to have already been set. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.40 at $57.04 per cwt with the range from $53.00 to $57.38 on 3,121 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.02 at $55.27 per cwt with the range from $53.00 to $56.00 on 396 head reported sold. The National Pork Plant Report posted 255 loads selling with carcass values gaining $0.04 per cwt. Lean hog index for 12/22 is at $61.62 down $0.14 with a projected two-day index of $61.59, down $0.03.
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