Moderate to strong buyer support has developed through the cattle complex with triple-digit gains still holding in front-month live cattle futures. Strong cash market support last week is still helping to bring needed support to the entire complex. Corn prices are higher in light trade. March corn futures are 2 cents higher Monday. Stock markets are higher in light trade. The Dow Jones is 83 points lower while Nasdaq is down 12 points.
LIVE CATTLE:
Triple-digit gains have quickly moved through the live cattle complex. This is bringing additional support back to the market although some traders have slowed the buyer interest due to the pullback in the rest of the market. Trade is likely to remain sluggish through the rest of the session although current gains may continue to hold. Cash cattle activity remains undeveloped with show list distribution and inventory taking the main order of business through the entire day following higher prices last week. It is likely that trade will hold off until midweek or later this week. Boxed beef cut-outs at midday are higher, $1.95 higher (select) and up $1.28 per cwt (choice) with light movement of 58 total loads reported (32 loads of choice cuts, 11 loads of select cuts, 5 loads of trimmings, 10 loads of ground beef).
FEEDER CATTLE:
Firm gains are seen in a narrow to moderate trading range although prices have backed away from previous gains with markets 10 to 50 cents per cwt higher at midday. The back and forth shifts in live cattle trade during the morning has caused some traders to focus on the potential for additional market activity and this could bring about increased buyer support through the next several days.
LEAN HOGS:
Lean hog futures remain mixed in a narrow trading range as very limited activity is seen across the complex. The inability to bring additional direction to the market may not only keep prices in a narrow range, but could keep most traders on the sidelines through much of the week. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.25 at $69.39 per cwt with the range from $62.00 to $70.00 on 3,153 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 139 loads selling with carcass values falling $0.66 per cwt. Lean hog index for 1/25 is at $73.77 unchanged with a projected two-day index of $73.83, up 0.06.
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