Gains have developed through the cattle complex with traders looking for increased overall buyer support through the last half of the week. The expectation that trade volume will continue to erode over the next couple of days may limit price shifts in all markets. Corn prices are lower in light trade. July corn futures are 2 cents lower. Stock markets are lower in light trade. The Dow Jones is 129 points lower while Nasdaq is down 10 points.
LIVE CATTLE:
Narrow losses have developed in spot month June futures as limited activity has been seen through the morning. The rest of the complex is finding light buyer support with 10 to 40 cents per cwt higher. The higher price moves in feeder cattle contracts through the morning is sparking some stability and firmer market tones through the last half of the week. Cash cattle activity remains sluggish with bids redeveloping in the North at the same prices as seen Wednesday. Live bids are seen at $108 per cwt while dressed bids are developing at $175 per cwt. With asking prices significantly above these levels, trade may easily be pushed off until sometime Friday. Boxed Beef cut-outs at midday are mixed, $0.14 higher (select) and down $1.07 per cwt (choice) with moderate movement of 73 total loads reported (28 loads of choice cuts, 24 loads of select cuts, 7 loads of trimmings, 13 loads of ground beef).
FEEDER CATTLE:
Triple-digit gains have quickly moved into the feeder cattle complex. There is growing support in all cattle trade although the sluggish market activity expected through the last half of the week could add even more volatility to the complex. May futures are leading the market higher with traders seemingly trying to catch up with previous gains in other markets. May through September contracts are holding gains near $1 per cwt at midday, giving an overall supportive shift to the market.
LEAN HOGS:
Narrow gains are seen in nearby lean hog futures trade while very limited trade activity has developed Thursday morning. This is limiting not only overall direction in the market but the ability for anyone to really desire to step into the complex ahead of the long holiday weekend. Nearby contracts are 2 to 15 cents per cwt lower with several deferred contracts still untraded through the morning. The limited interest may keep most contracts under pressure through the rest of the session. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.27 at $65.06 per cwt with the range from $62.00 to $65.25 on 2,620 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.08 at $64.67 per cwt with the range from $62.00 to $65.25 on 505 head reported sold. The National Pork Plant Report posted 135 loads selling with carcass values falling $0.85 per cwt. Lean hog index for 5/22 is at $69.03 up 0.34 with a projected two-day index of $69.29, up 0.26
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