Mixed trade is seen through the livestock futures complex with strong early gains unable to be sustained as traders continue to focus on limited activity and very little new market direction seen through the complex. Corn prices are lower in light trade. May corn futures are 2 cents lower. Stock markets are lower in light trade. The Dow Jones is 150 points lower while Nasdaq is down 3 points.
LIVE CATTLE:
Light to moderate buyer support is still developing across the complex. This is helping to hold prices 10 to 60 cents per cwt higher. Spot month April contracts continue to lead the market higher with a 60 cent per cwt gain at midday although trade volume remains sluggish. Activity levels through the rest of the Wednesday session is expected to remain limited. This should keep prices in a narrow trading range, as traders seem content with the current market ranges over the last couple of trading sessions. Cash cattle markets remain sluggish with just a few bids redeveloping early Wednesday. Bids are seen at $116 live basis in the South and $186 dressed across the North. Asking prices are not completely firmed up at this point, but the ones that are reported are at $120 live basis and $190 per cwt dressed basis. Active feedlot trade is likely to hold out until sometime Thursday or Friday, although a few cattle may be sold before the end of the day. The Fed Cattle Exchange Auction today listed a total of 3,931 head, with 509 actually sold, 3,312 head listed as unsold, and 110 head listed as PO (Passed Offer). The state by state breakdown looks like this: KS 328 total head, with 218 head sold at $117.00-$118.00, 0 head unsold, 110 head listed as PO ($117.00); NE 3,490 total head, with 232 head sold at $118.00, 3,258 head unsold, and 0 head listed as PO; TX 113 total head, with 59 head sold at $114.00(17-30 day delivery), 54 head unsold, and 0 head listed as PO; CO - no cattle reported; IA - no cattle reported; other states (OK, SD, MN) - no cattle reported. The delivery date/weighted averages breakdown is as listed: 1-9 day delivery: 3,818 head total, 450 head sold, with a weighted average price of $117.71; 1-17 day delivery - no cattle reported; 10-17 day delivery - no cattle reported; 17-30 day delivery 113 head total, 59 head sold, with a weighted average price of $114.00. Boxed Beef cut-outs at midday are mixed, $0.72 lower (select) and up $0.28 per cwt (choice) with moderate movement of 76 total loads reported (38 loads of choice cuts, 19 loads of select cuts, 7 loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Strong early support in feeder cattle futures have eroded through the morning with feeder cattle markets holding prices from 12 cents lower to 35 cents higher. There is increased market uncertainty as April through August futures have been able to hold moderate gains, while deferred futures have seen some pressure due to limited new buyer activity seen in the market. This may add even more price volatility over the near future, which could shift prices in both directions.
LEAN HOGS:
Mixed trade is seen at midday across lean hog futures trade. Spot month April contracts are holding a 17 cent loss as early buyer support slowly faded through the first hours of trade. The rest of nearby contracts are holding moderate to firm gains with June contracts showing the most significant support as traders look for increased overall buyer activity to develop in the next couple of days. Traders are also quickly rolling contracts from April to June contract months, given the price spreads. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down 0.29 at $46.26 per cwt with the range from $43.00 to $48.00 on 3,565 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up 0.32 at $47.41 per cwt with the range from $43.00 to $48.00 on 1,010 head reported sold. The National Pork Plant Report posted 197 loads selling with carcass values falling $0.68 per cwt. Lean hog index for 4/9 is at $53.50 down 0.52 with a projected two-day index of $53.02, down 0.48.
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