Limit gains in live cattle futures has sparked increased buyer activity in all livestock markets. There is expected to be some additional follow-through interest moving into the market through the end of the session. Corn prices are lower in light trade. July corn futures are 6 cents lower. Stock markets are higher in active trade. The Dow Jones is 277 points higher while Nasdaq is up 58 points.
LIVE CATTLE:
Buyer interest exploded through the complex as traders continue to actively step back into the market midweek. Although cash markets remain undeveloped, the strong shift higher in meat values is helping to spark some additional trade volume and push nearby contracts sharply higher. August futures have been locked in limit-higher trade over the last half hour, which could spark some additional buyer activity in most other nearby contracts if this buyer support holds. Cash cattle interest remains sluggish Wednesday morning. A few starter bids have been seen through parts of Nebraska with dressed prices of $175 per cwt. But the rest of the market remains silent. Asking prices are holding around $115 per cwt live and $184 and higher dressed. These asking prices are expected to firm following the strong moves in futures trade through the morning. The Fed Cattle Exchange Auction today listed a total of 449 head, with 225 actually sold with a weighted average of $110.00, 224 head listed as unsold, and zero head listed as PO (Passed Offer). All cattle this week were from Kansas and are set for 1-9 day delivery. Boxed beef cut-outs at midday are higher, $0.98 higher (select) and up $1.74 per cwt (choice) with light movement of 62 total loads reported (36 loads of choice cuts, 19 loads of select cuts, no loads of trimmings, 6 loads of ground beef).
FEEDER CATTLE:
Sharp gains have developed in nearby feeder cattle futures with all remaining 2018 contracts holding a $2 per rally. There is expected to be some additional buyer activity developing through the rest of the session as nearby live cattle futures have moved to limit higher gains. The support in feeder cattle futures seems to be driven by the recent moves in live cattle, which is contrary to recent market shifts.
LEAN HOGS:
Light buyer support is slowly but steadily moving into the lean hog complex Wednesday morning. This has pushed spot-month June futures to $76.72 per cwt after a $1.97 per cwt gain. The overall support in the rest of the market has remained much more subdued, but the overall higher price levels seen in all areas is helping to build market interest through the end of the month. Cash prices are unreported due to reporting delays on the National Direct morning cash hog report. Cash prices are unreported due to reporting delays on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 137 loads selling with carcass values falling $0.93 per cwt. Lean hog index for 5/25 is at $69.46 up 0.02 with a projected two-day index of $69.50, up 0.04.
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