Strong gains have developed across the cattle futures complex with traders focusing on the renewed support in feeder cattle futures posting triple digit gains in front of the cattle on feed report to draw traders back to the market. Lean hog futures are mostly lower in narrow trading losses as trade activity remains sluggish. Corn prices are steady in light trade. March corn futures are Steady Friday. Stock markets are higher in light trade. The Dow Jones is 86 points higher while Nasdaq is up 41 points.
LIVE CATTLE:
Firm buyer support is seen across live cattle trade with traders pushing futures 60 to 90 cents per cwt higher. The overall support in the market continues to bring underlying support back to the market, although these moves are not able to offset the aggressive and significant pressure seen Thursday. It is likely that very little additional direction will be seen before markets close Friday, allowing prices to hold current ranges through the weekend. Cash cattle trade is still undeveloped for the week, and is going to move into the afternoon or evening Friday at this point. Likely trade will be pushed off until after the release of the cattle on feed report. Bids have remained steady with levels seen earlier in the week with live bids seen at $122 to $123 per cwt while dressed bids are holding at $192 to $193 per cwt. Asking prices are holding at $126 and higher live basis while dressed asking prices are seen at $200 to $202 per cwt. Boxed Beef cut-outs at midday are lower, $0.48 lower (select) and down $0.01 per cwt (choice) with light movement of 50 total loads reported (29 loads of choice cuts, 9 loads of select cuts, 5 loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Strong triple digit gains have quickly moved back into feeder cattle futures as traders continue to adjust market expectations ahead of the upcoming cattle on feed report, and following the late day market tumble Thursday. Even though front month March futures are holding gains of $1.50 per cwt, there continues to be a sense of market pressure as prices fell nearly $2.50 per cwt earlier in the week. This may add even more softness to the market during the next few days and end of the month.
LEAN HOGS:
Light price pressure is seen in most futures contracts late Friday morning as trade activity remains sluggish across the entire lean hog complex. Nearby futures are holding losses of 2 to 7 cents per cwt as the focus on the market pressure has moved to increased market weakness. Trade levels may continue to widen over the next couple of hours, although the tone of the market is weak leading into the weekend. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.13 at $69.44 per cwt with the range from $62.00 to $69.81 on 2,717 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.94 at $68.68 per cwt with the range from $62.00 to $69.50 on 495 head reported sold. The National Pork Plant Report posted 135 loads selling with carcass values adding $0.73 per cwt. Lean hog index for 1/24 is at $73.77 down $0.03 with a projected two-day index of $73.77, unchanged.
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