Firm buyer support has moved through livestock futures. Cattle and hog markets have bounced higher midday following early morning pressure. This could help to solidify the overall tone of the market through the end of the week. Corn prices are mixed in light trade. May corn futures are 1 cent higher. Stock markets are higher in light trade. The Dow Jones is 241 points higher while Nasdaq is up 69 points.
LIVE CATTLE:
Strong gains have quickly moved through live cattle futures trade with front-month June futures leading the market higher. This pushed spot contracts $1.42 per cwt higher with prices moving to $107.10 per cwt. Even though additional buyer support may develop through the end of the session, the moderate gains in the rest of the complex is likely to limit additional market shifts. Cash cattle bids have been restated through the morning Thursday in all areas, but little has changed from previous bids earlier in the week. Bids are seen from $119 to $122 live basis and $192 to $193 on a dressed basis. But this is a long way away from current asking prices of $127 and higher live basis, and $195 to $200 dressed. This could delay active trade until Friday, although bid activity is expected to improve through the rest of the day. Boxed Beef cut-outs at midday are higher, $0.98 higher (select) and up $0.45 per cwt (choice) with light movement of 65 total loads reported (28 loads of choice cuts, 19 loads of select cuts, 13 loads of trimmings, 4 loads of ground beef).
FEEDER CATTLE:
Light pressure seen early in the session has been replaced by narrow gains in most feeder cattle contracts. Although spot month May contracts are leading the market higher with a 60 cent per cwt gain, the rest of the market is seen 7 to 30 cents higher. Most traders have become much more comfortable on the sidelines with traders looking for direction in outside markets and late-morning gains in live cattle trade helping to spark some underlying buyer support.
LEAN HOGS:
Very little has changed in lean hog futures through the last couple hours of trade with prices mixed to mostly higher at midday. The limited trade activity in May contracts is still limiting buyer support, and keeping prices 45 cents per cwt lower. The rest of the complex has posted light to moderate gains through the morning with June futures trading 50 cents higher in limited volume. It is expected that this narrow support is likely to hold through the rest of the session, potentially drawing additional late day support back to the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.03 at $60.70 per cwt with the range from $60.00 to $62.00 on 3,716 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.15 at $61.16 per cwt with the range from $60.00 to $62.00 on 1,360 head reported sold. The National Pork Plant Report posted 150 loads selling with carcass values gained $1.23 per cwt. Lean hog index for 5/8 is at $63.55 up 0.22 with a projected two-day index of $63.73, up 0.18
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