Early support in livestock trade has eroded through the morning with moderate to strong losses seen in cattle futures and continue to weaken the overall tone of the market. Hog futures are mixed in light to moderate activity with increased support focusing on recent market gains seen Tuesday. Corn prices are lower in light trade. May corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 170 points higher while Nasdaq is up 52 points.
LIVE CATTLE:
Live cattle futures have turned sharply lower with August and October futures holding triple-digit losses. The inability to hold early buyer support has created some uncertainty in all trade and could bring about even more pressure through the complex. There is growing weakness that may continue to develop across the complex as traders look for follow through selling to be prevalent through the rest of the day. Cash cattle trade is still undeveloped in feedlot country with a few scattered bids developing through the morning. Bids are seen at $120 live and $192 to $193 dressed. Asking prices still remain well above current bids at $128 to $130 live basis and $195 and higher. Active trade is likely to hold off until sometime Thursday or Friday The Fed Cattle Exchange Auction today listed a total of 2,456 head, with zero actually sold, 2,367 head listed as unsold, and 89 head listed as PO (Passed Offer). The state by state breakdown looks like this: KS 269 total head, with 0 head sold, 180 head unsold, 89 head listed as PO ($122.25); NE 2,187 total head, with 0 head sold, 2,187 head unsold, and 0 head listed as PO; TX - no cattle reported; CO - no cattle reported; IA - no cattle reported; other states (OK, SD, MN) - no cattle reported. All cattle were listed had a 1-9 day delivery date. Boxed Beef cut-outs at midday are lower, $0.76 lower (select) and down $0.13 per cwt (choice) with light movement of 83 total loads reported (39 loads of choice cuts, 20 loads of select cuts, 14 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Wide price shifts have developed in feeder cattle trade through the morning. Early follow through gains moved into the complex as buyers posted triple digit market gains. But the limited amount of follow-through interest allowed for selling to redevelop. This has led to pressure of $1 to $1.50 per cwt in many contracts as the focus seems to be placed on overall market uncertainty in all cattle markets.
LEAN HOGS:
Mixed trade in a narrow trading range is seen through the complex. There is the potential that increased activity may develop late in the day, although traders could focus on limited market direction through the rest of the week. Early gains have been replaced by narrow losses in most nearby contracts, as traders seem to be focusing on position-taking opportunities through late morning. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.35 at $59.63 per cwt with the range from $54.00 to $60.00 on 3,711 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.25 at $59.02 per cwt with the range from $57.50 to $60.00 on 625 head reported sold. The National Pork Plant Report posted 204 loads selling with carcass values gained $0.69 per cwt. Lean hog index for 5/7 is at $63.33 up 0.04 with a projected two-day index of $63.55, up 0.22
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