Strong gains have developed in lean hog trade midweek. This is helping to bring additional underlying buyer power back to the hog market. Cattle trade remains mixed in light to moderate activity. The inability to hold early support is causing some concerns through the entire market. Corn prices are higherin light trade. March corn futures are 2 cents higher Wednesday. Stock markets are lower in light trade. The Dow Jones is 6 points lower while Nasdaq is down 24 points.
LIVE CATTLE:
Light activity is seen across the entire live cattle futures complex. This may bring additional market direction to the market. The focus on trader activity is looking for increased buyer support as strong gains have developed in the lean hog market. But with prices in April contract through the rest of the complex holding prices with single digit moves, the lack of overall volume and additional trade interest is questionable. Cash cattle markets are still sluggish, although a few bids have developed in the North. Bids are seen at $122 live and $192 to $193 dressed. Asking prices are seen at $126 and higher live and $200 dressed. The Fed Cattle Exchange Auction today listed a total of 494 head, with 0 actually sold, 356 head listed as unsold, and 138 head listed as PO (Passed Offer). The state by state breakdown looks like this: KS 356 total head, with 0 head sold, 356 head unsold, 0 head listed as PO; NE -- no cattle reported; TX 138 total head, with 0 head sold, 0 head unsold, and 138 head listed as PO ($123.75); CO -- no cattle reported; IA -- no cattle reported; other states -- no cattle reported. The delivery date/weighted averages breakdown is as listed: 1-9 day delivery: 494 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. Boxed Beef cut-outs at midday are higher, $0.75 higher (select) and up $0.83 per cwt (choice) with light movement of 55 total loads reported (35 loads of choice cuts, 8 loads of select cuts, 6 loads of trimmings, 6 loads of ground beef).
FEEDER CATTLE:
Narrow losses are seen across all feeder cattle trade. This overall lack of support may create follow through pressure in the entire complex, although at this point, the losses are likely to be based more on position taking than any market correction. Nearby contracts are holding 20 to 30 cent losses, while deferred futures are posting losses near 50 cents per cwt.
LEAN HOGS:
Lean hog futures have continued to gain moderate to strong buyer support through the complex. This is helping to draw buyer activity into nearby trade with April futures still holding triple digit gains. The rest of the market is less aggressive as traders have backed away from session highs as the market continues to focus on the ability to bring commercial trade back to the complex. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is down $0.15 at $68.68 per cwt with the range from $62.00 to $70.50 on 7,712 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.97 at $67.65 per cwt with the range from $62.00 to $70.50 on 3,767 head reported sold. The National Pork Plant Report posted 149 loads selling with carcass values falling $1.37 per cwt. Lean hog index for 1/19 is at $73.40 down $0.27 with a projected two-day index of $73.39, down $0.01.
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