Mixed trade is seen through the entire livestock complex with buyers unwilling to actively move into the cattle complex while lean hog futures are holding narrow gains. The focus on early-week trade activity in the cash cattle market may limit additional late-week futures activity. Corn prices are higher in light trade. March corn futures are 2 cents higher Tuesday. Stock markets are higher in light trade. The Dow Jones is 115 points higher while Nasdaq is up 15 points.
LIVE CATTLE:
Lit pressure is seen in most contracts with nearby futures hovering steady to 35 cents per cwt lower. This overall lack of support in the market may add even more weakness to the complex. There is limited interest from both sides developing Tuesday, which is expected to keep markets in a narrow range through the rest of the complex. Cash cattle trade has redeveloped Tuesday morning following the uncharacteristic early week activity that started to develop Monday afternoon. Trade is seen in all areas with prices seen at $120 live and $192 dressed. These prices are generally $3 lower than last week on dressed business while live trade is steady with Monday activity and generally $1 to $1.50 per cwt lower than last week. Although trade may continue to trickle in over the next several days, but prices may be well established at this point. Boxed beef cut-outs at midday are higher, $0.28 higher (select) and up $1.17 per cwt (choice) with light movement of 60 total loads reported (32 loads of choice cuts, 18 loads of select cuts, 3 loads of trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Strong losses have continued to develop through the feeder cattle complex with prices in front month January futures leading the market lower with a $1.75 per cwt loss. This pressure has sparked light to moderate weakness through the rest of the complex as prices are seen 40 to 50 cents per cwt. This may add to the market softness over the next couple of hours. The narrowly mixed trade seen in live cattle trade is keeping most buyers hovering on the sidelines, and will likely remain absent through most of the day.
LEAN HOGS:
Narrow trading ranges have been seen through the lean hog complex with prices hovering between 35 cents lower to 32 cents higher. Most contracts are steady to 10 cents per cwt higher with very little momentum seen from the cash market activity or outside market direction from other markets. The focus on market stability seems to be the main driver of trader interest through the complex. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $1.44 at $66.98 per cwt with the range from $60.00 to $68.50 on 7,004 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $1.72 at $67.78 per cwt with the range from $60.00 to $68.50 on 4,492 head reported sold. The National Pork Plant Report posted 206 loads selling with carcass values adding $0.79 per cwt. Lean hog index for 1/05 is at $65.65 up $1.43 with a projected two-day index of $66.37, up $0.72.
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