Firm gains have developed Wednesday morning as traders are looking for increased overall support through the complex. Triple-digit gains are seen in all markets as traders look to expand gains seen earlier in the week in cattle trade. 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 153 points lower while Nasdaq is down 12 points.
LIVE CATTLE:
Strong gains are seen in late summer and early fall contract months with august futures leading the market higher with a $1.75 per cwt rally. This move higher is helping to draw additional buyer support back to the table as the price spread between the June and August contracts remains sluggish. There is growing uncertainty as to just how much additional price support will develop through the end of the session and week ahead of the upcoming long holiday weekend. Cash cattle bids have started to develop through the morning Wednesday with live bids seen at $108 and $175 per cwt dressed. These bids are expected to increase through the day. The preliminary report from the Fed Cattle Exchange Auction today listed a total of 225 head (only 2 lots set for 1-9 day delivery for Kansas, no other states had cattle listed), with 0 actually sold, 225 head listed as unsold, and 0 head listed as PO (Passed Offer). Boxed Beef cut-outs at midday are mixed, $0.66 lower (select) and up $0.97 per cwt (choice) with moderate movement of 91 total loads reported (38 loads of choice cuts, 21 loads of select cuts, 16 loads of trimmings, 17 loads of ground beef).
FEEDER CATTLE:
Gains through the feeder cattle futures are holding from $1.50 to $2 per cwt through late morning as follow through buyer support moves back into the very limited support through the complex. May contracts still remain lightly traded with prices 45 cents per cwt higher, although August through October contracts are trading at $142 per cwt with gains near $1.80 per cwt. Trade may slow following the end of the session as traders focus on the upcoming holiday weekend.
LEAN HOGS:
Firm gains have continued to hold through the morning with triple-digit gains seen in June and July contracts. This may develop increased buyer support through the end of the session with June contracts are trading at $74.40 per cwt. There is growing support through the market, although the potential to hold early support may cause some additional erosion through the entire complex. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 155 loads selling with carcass values falling $1.62 per cwt. Lean hog index for 5/21 is at $68.69 up 0.33 with a projected two-day index of $69.03, up 0.34
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