Early-market shifts have moderated significantly through late morning with mixed trade seen in both cattle and hog futures. The tone of the market remains firm in the hog complex as follow-through buying activity is helping to instill triple-digit gains through nearby contracts. Cattle markets are mixed to lower, led by early triple-digit pressure in the feeder cattle market. Corn prices are higher in light trade. May corn futures are 1 cent higher. Stock markets are lower in light trade. The Dow Jones is 57 points lower while Nasdaq is down 15 points.
LIVE CATTLE:
Mixed trade is seen in live cattle trade with June futures leading the buyer support as prices have moved off of morning losses. June futures are trading $1.55 per cwt higher due to early selling pressure quickly eroding and creating a vacuum for buyer support to quickly fill. This move through the morning has significantly shifted the price spread between the June and August contracts, although the limited overall trade activity and light volume expected through the end of the session could keep markets volatile in the near future. Cash cattle interest is starting to develop with a few bids in the South seen at $120 per cwt through the morning. Although asking prices in general remain quiet, there are a few asking prices in the South posted around $127 and higher on a live basis. Most activity is likely to be pushed to later in the week, although the ability for packers to gain access of cattle Monday due to some sales developing could change the tone of the market over the next couple of days. Boxed beef cut-outs at midday are mixed, $0.47 lower (select) and up $2.28 per cwt (choice) with light movement of 63 total loads reported (27 loads of choice cuts, 29 loads of select cuts, no loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Moderate to strong price pressure has been seen through the entire complex with triple digit losses holding through most of the morning. Although nearby contracts have quickly backed away from these market lows, and are holding 10 to 50 cent losses at midday, the focus on follow through pressure is keeping the market tone weak Tuesday morning. Deferred futures are still holding sharp losses, but the volume has slowed significantly in the market and could add some stability to the entire cattle futures market through midweek.
LEAN HOGS:
Firm gains are seen in most lean hog futures at midday with June futures leading the charge higher as traders continue to bounce off of recent market lows. In the past two weeks, June futures have posted a $3 per cwt rally as steady to strong buyer activity is moving back into the market. Prices remain mixed though with limited buyer support seen in the lightly traded contract months. This could start to erode some of the recent gains in nearby contracts if follow through buyer activity does not continue to develop through the upcoming weeks. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.28 at $59.25 per cwt with the range from $53.00 to $60.50 on 4,370 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.19 at $59.59 per cwt with the range from $56.50 to $60.50 on 1,611 head reported sold. The National Pork Plant Report posted 199 loads selling with carcass values falling $0.45 per cwt. Lean hog index for 5/4 is at $63.29 up 0.16 with a projected two-day index of $63.33, up 0.04
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