Sharp gains in cattle futures has helped to build underlying support in all livestock futures. Live cattle futures continue to lead the market higher through the morning with increased activity possible through the end of the session. Corn prices are higher in light trade. May corn futures are 2 cents higher. Stock markets are lower in light trade. The Dow Jones is 134 points lower while Nasdaq is down 35 points.
LIVE CATTLE:
Sharp gains have quickly moved into live cattle futures midday Thursday. The underlying support in the complex is helping to add even more movement to the complex as traders look for increased underlying support from cash cattle trade, which has posted firm gains. The additional moves in beef values have helped to keep buyers active through the last half of the week. Cash cattle trade has started to develop through the morning with increased support in futures and packer bids helping to stimulate increased interest in selling by feeders. Live trade in the South is seen $125 to $126 per cwt. This is generally $3 higher per cwt than last week's prices. Dressed trade in the North is still undeveloped, but bids have improved and remain at $198 to $200 per cwt at this point. Asking prices on cattle not sold are seen at $128 to $130 live and $200 and higher dressed basis. Boxed Beef cut-outs at midday are higher, $0.68 higher (select) and up $0.16 per cwt (choice) with light movement of 58 total loads reported (21 loads of choice cuts, 17 loads of select cuts, 6 loads of trimmings, 14 loads of ground beef).
FEEDER CATTLE:
Triple-digit gains have quickly moved through feeder cattle trade with nearby contracts holding a $1.70-to-$1.80-per-cwt rally. The strong support in the live cattle complex has helped to draw additional momentum back into the market through the Thursday session. There is even more support seen following the development of cash cattle trade at higher prices. This could help to spark some late-day buying interest, which has previously remained on the sidelines.
LEAN HOGS:
Firm gains have continued to move into the lean hog complex with traders focusing on additional buyer support in nearby contracts. May futures are leading the market with a 70 cent gain as traders continue to focus on the underlying support seen through the cattle market and potential that fundamental support will continue to move into the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.08 at $58.96 per cwt with the range from $52.00 to $59.10 on 3,842 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 151 loads selling with carcass values falling $0.70 per cwt. Lean hog index for 5/2 is at $62.66 up 0.21 with a projected two-day index of $62.93, up 0.27.
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