Prices have moved higher in all livestock trade as follow through support in the cattle complex is leading the entire market higher. There is growing support through the rest of the market although traders continue to be very focused on the development in cash cattle trade through the end of the week. Corn prices are lower in light trade. March corn futures are 1 cent lower Thursday. Stock markets are mixed in light trade. The Dow Jones is 95 points lower while Nasdaq is up 3 points.
LIVE CATTLE:
Firm gains have held through the morning with nearby contracts holding support of 80 to 95 cents per cwt. The aggressive moves seen Wednesday has helped to bring buyers back to the table, although the overall tone of the market remains much less aggressive Thursday morning. There is the potential to bring some additional late day buyer support back into the market which could push prices to triple digit gains before closing bell. Cash cattle markets have shown some increased bidding activity through the morning with bids developing at $118 live basis, and $189 to $190 dressed. It may be Friday before active trade is seen. Asking prices are seen at $124 and higher live and $195 to $197 dressed basis. Boxed Beef cut-outs at midday are higher, $1.38 higher (select) and up $0.34 per cwt (choice) with light movement of 95 total loads reported (57 loads of choice cuts, 30 loads of select cuts, no loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Triple-digit gains have developed in front month futures as feeder cattle markets are still trying to assess the aggressive moves seen Wednesday. The underlying tone of the market remains firm with all nearby contracts holding gains of 90 cents to $1.10 per cwt at midday. The potential to draw buyers more aggressively back into the complex through the end of the session may add to the underlying market moves.
LEAN HOGS:
Narrow gains have been seen across the entire lean hog futures complex with markets seen steady to 10 cents higher in most contracts. This is allowing for some sluggish market activity to be seen through the entire complex. Increased buyer support may step into the market in the last couple hours of trade, although traders seem to be focusing on limited volume through the end of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.35 at $69.35 per cwt with the range from $62.00 to $70.50 on 4,138 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.33 at $68.39 per cwt with the range from $62.00 to $70.50 on 1,585 head reported sold. The National Pork Plant Report posted 131 loads selling with carcass values falling $0.09 per cwt. Lean hog index for 1/16 is at $72.99 up $1.07 with a projected two-day index of $73.55, up $0.56.
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