Firm buyer support has moved into the cattle complex with traders looking for additional market direction through the complex. There is growing support that increased trade volume may develop in live cattle and feeder cattle markets while hog futures are trying to find market stability. Corn prices are higher in light trade. March corn futures are 1/2 cent higher Thursday. Stock markets are lower in active trade. The Dow Jones is 600 points lower while Nasdaq is down 169 points.
LIVE CATTLE:
Firm gains have quickly developed in live cattle trade. This overall support is expected to be carried through the end of the session. Even though nearby contracts are holding gains of 40 to 60 cents per cwt, prices have quickly backed away from triple digit gains seen earlier in the morning. There is renewed and widespread support to back away from early week losses. Cash cattle activity remains quiet with live bids redeveloped through the morning with the same price levels seen earlier in the week. This is not creating a sense of optimism as asking prices remain similar at $129 to $130 live and $203 and higher dressed. Active trade is likely to be pushed off until Friday unless something major shakes up through the complex. Boxed Beef cut-outs at midday are mixed, $1.01 higher (select) and down $0.33 per cwt (choice) with light movement of 73 total loads reported (45 loads of choice cuts, 14 loads of select cuts, 7 loads of trimmings, 6 loads of ground beef).
FEEDER CATTLE:
Mixed trading ranges have slowly developed in feeder cattle futures. Even though moderate to strong support was seen in live cattle trade through most of the morning, the inability to bring aggressive trade back to the table in the feeder cattle complex may add to the uncertainty of sparking commercial trade. March futures are steady at $148.30 per cwt. There is a growing sense that renewed buyer activity could quickly flood through the market over the coming days.
LEAN HOGS:
Narrow trading ranges are seen early in the complex with the focus on mixed activity Thursday. April futures are the only market holding a narrow gain, with prices 5 cents per cwt higher. The rest of the complex is stuck within a narrow to moderate range with prices steady to 40 cents per cwt lower. The overall lack of follow through pressure may quickly cause renewed interest to develop through the end of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.48 at $70.37 per cwt with the range from $62.00 to $72.50 on 3,473 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.11 at $70.14 per cwt with the range from $63.00 to $72.50 on 871 head reported sold. The National Pork Plant Report posted 123 loads selling with carcass values falling $0.33 per cwt. Lean hog index for 2/6 is at $75.38, up 0.54 with a projected two-day index of $75.63, up 0.25.
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