Firm buyer support is moving into the cattle complex, which is likely to draw additional buyer support back to the table. This may firm underlying market shifts, and help to mobilize commercial buyers who have remained generally comfortable on the sidelines. Lean hog futures posted narrow market shifts through the morning. Corn prices are higher in light trade. March corn futures are 1 cent higher Tuesday. Stock markets are lower in light trade. The Dow Jones is 61 points lower while Nasdaq is down 45 points.
LIVE CATTLE:
Light to moderate buyer support is holding through the entire live cattle complex with prices ranging from 25 to 80 cents per cwt. The overall lack of follow through gains early in the session when prices were $1 per cwt higher in most nearby contracts is likely to limit follow through support late Tuesday. This could add some uncertainty to the entire complex. Cash cattle activity remains generally sluggish with just a few scattered bids developing in the South. Bids are seen at $126 per cwt, which is well expected for this time of week. Asking prices that have been floated are seen at $130 in the south. Asking prices and bids are unavailable in the North at this time for both live and dressed markets. It is expected to be midweek or later before active interest develops. Boxed Beef cut-outs at midday are higher, $0.04 higher (select) and up $0.74 per cwt (choice) with light movement of 84 total loads reported (46 loads of choice cuts, 22 loads of select cuts, 5 loads of trimmings, 12 loads of ground beef).
FEEDER CATTLE:
Firm buyer support is moving through the feeder cattle complex with traders focusing on increased buyer support leading the entire cattle complex higher. Prices have moved back from strong triple digit gains of near $2 per cwt higher early in the session, although firming support near $1 per cwt higher seems to be the move that most traders are willing to make at midday. The focus on additional moves in live cattle trade as well as potential firmness in outside markets could bring some late-day buying back into the complex.
LEAN HOGS:
Mixed trade is seen across the complex with prices hovering in single-digit price moves in nearby trade. This overall lack of direction is helping to build some stability following previous pressure, but is unable to bring back a sense of buyer support given the lack of overall strength in the market. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.28 at $63.13 per cwt with the range from $56.50 to $63.50 on 9,390 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.45 at $63.24 per cwt with the range from $58.00 to $63.50 on 2,070 head reported sold. The National Pork Plant Report posted 191 loads selling with carcass values falling $0.34 per cwt. Lean hog index for 2/22 is at $69.78, down 0.39 with a projected two-day index of $69.32, down 0.46.
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