Mixed trade is seen at midday in cattle trade with prices hovering a narrow to moderate trading range while very little direction is seen through the entire complex. The additional pressure in hog futures is not a surprise, although it is bringing additional weakness to the entire market. Corn prices are mixed in light trade. March corn futures are steady Friday. Stock markets are higher in light trade. The Dow Jones is 201 points higher while Nasdaq is up 42 points.
LIVE CATTLE:
Futures trade remains stuck in a narrowly mixed trading range at midday with very little market direction developing across the complex. Prices are seen 15 cents lower to 17 cents higher in nearby contracts while the early pressure in the market has pushed slightly more aggressive weakness in deferred contracts. This could add even more softness into price levels ahead of the long weekend. Trade is likely to remain very sluggish over the next couple of hours. Cash cattle trade is still undeveloped although bids have become more active as the morning has progressed. Cash bids are still at $124 per cwt while dressed bids have improved to $202 per cwt through the morning. But there still remains a moderate gap between bids and asking prices with asking prices at $130 to $132 live and $205 dressed. Boxed beef cut-outs at midday are higher, $0.02 higher (select) and up $0.16 per cwt (choice) with light movement of 54 total loads reported (32 loads of choice cuts, 8 loads of select cuts, zero loads of trimmings, 13 loads of ground beef).
FEEDER CATTLE:
Mixed trade is seen Friday morning as traders are slowly moving back from the narrow to moderate losses that enveloped the cattle complex Friday. Overall trade volume remains extremely sluggish with traders looking for increased market direction long term and the potential that additional buying will step back into the market next week following the long weekend. With markets closed on Monday while the majority of the industry does not view Presidents Day as a major holiday, it is likely that some market adjustments will be done either on the front or back end of this market closure. This could keep trade more volatile through the end of the day.
LEAN HOGS:
Moderate to strong pressure is developing across nearby lean hog futures as traders focus on April contracts moving to the official front month contract. This move has pushed April futures $1.25 per cwt lower to $68.47 per cwt. The overall lack of support in the rest of the market ahead of the weekend is expected to leave most traders willing to stay in the background. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $1.10 at $64.67 per cwt with the range from $59.00 to $65.50 on 4,097 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.84 at $63.66 per cwt with the range from $59.00 to $64.50.00 on 447 head reported sold. The National Pork Plant Report posted 163 loads selling with carcass values falling $0.73 per cwt. Lean hog index for 2/14 is at $73.49, down 0.52 with a projected two-day index of $72.89, down 0.60.
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