Livestock futures are mostly lower, although cattle trade has backed away from early losses. Triple-digit pressure continues to be seen through hog trade as traders are unwilling to step back into the market. Corn prices are higher in light trade. March corn futures are 3 cents higher Tuesday. Stock markets are higher in light trade. The Dow Jones is 197 points higher while Nasdaq is up 56 points.
LIVE CATTLE:
Light losses are holding in nearby contracts with prices 10 to 50 cents per cwt lower. But the pullback from earlier pressure is creating a renewed sense of stability to the overall complex. This may bring even more support to the market as traders are looking for increased trade volume to be seen midweek even though price levels and volume may not change much through the rest of the afternoon Tuesday. Deferred contracts are holding narrow signal digit gains, allowing buyers to slowly step back into the market. Cash cattle trade is still undeveloped Tuesday although a few token bids have started to develop in the South. This is setting price levels at $124 per cwt on a live basis, but well below asking prices. Increased interest is likely to become more evident over the next couple of days. Boxed Beef cut-outs at midday are mixed, $0.92 lower (select) and up $0.47 per cwt (choice) with light movement of 59 total loads reported (34 loads of choice cuts, 14 loads of select cuts, 5 loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are mixed in a moderate trading range. Following the early market pressure due to expectations that outside markets would continue to tumble lower, prices have eased slightly with nearby contracts holding 60 to 80 cent losses, while deferred futures are mixed in a very narrow trading range. The overall lack of aggressive selling could open the door for renewed market support later in the week.
LEAN HOGS:
Sharp losses are holding in lean hog futures trade as traders continue to back away from the complex. There is likely to be some additional uncertainty through the market with losses of $1 to $2.50 per cwt seen through the entire complex. This may add even more weakness to the trade as softness continued to develop in front nearby contracts more quickly than deferred trade. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.28 at $72.94 per cwt with the range from $70.00 to $73.50 on 6,324 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.56 at $73.12 per cwt with the range from $71.00 to $73.50 on 3,620 head reported sold. The National Pork Plant Report posted 175 loads selling with carcass values adding $1.67 per cwt. Lean hog index for 2/2 is at $74.48, up 0.38 with a projected two-day index of $74.84, up 0.36.
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