Strong pressure has continued to develop in lean hog trade. There will continue to be moderate pressure seen through the hog market despite buyers trying to move back into the cattle complex. Corn prices are lower in light trade. July corn futures are 8 cents lower. Stock markets are mixed in light trade. The Dow Jones is 188 points higher while Nasdaq is up 44 points.
LIVE CATTLE:
Live cattle futures have moved higher at midday with prices 30 to 75 cents per cwt higher. June futures are leading the complex higher with prices at $105.67 per cwt with a 75 cent per cwt gain. The underlying support seen in the complex continues to draw buyers back to the table following moderate pressure through the morning. There is uncertainty in cash and beef values through most of the morning, although the focus may continue to be driven by outside market moves. Cash cattle markets remain undeveloped early Monday with activity limited to show list distribution and inventory taking. There is growing support in futures trade, but it will be hard to spark interest before midweek or later. Boxed beef cut-outs at midday are mixed, $0.12 lower (select) and up $0.27 per cwt (choice) with light movement of 66 total loads reported (27 loads of choice cuts, 19 loads of select cuts, 11 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Prices have traded in a narrow to moderate range on both sides of unchanged through the morning Monday. August feeder cattle futures are holding a 5 cent per cwt gain at midday, although prices have traded under pressure through most of the morning. There is growing support in all cattle markets following the renewed support live cattle futures. Prices are likely to hold within the current trading range through the rest of the session, as traders taking a longer term direction as they focus on potential long-range moves through the month of June.
LEAN HOGS:
Despite lean hog futures remaining under pressure through the morning Monday, prices have backed away from session lows seen earlier in the morning. There is additional pressure in all contracts, although the most aggressive losses still are holding in July and August contracts. June futures continue to hold narrow losses of 25 cents per cwt while holding at $77.30 per cwt. June and July contracts are holding a narrow 40-cent spread at midday, limiting additional direction through the entire complex. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.31 at $69.84 per cwt with the range from $63.00 to $71.00 on 5,345 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.49 at $70.72 per cwt with the range from $63.00 to $71.00 on 1,880 head reported sold. The National Pork Plant Report posted 140 loads selling with carcass values gaining $1.69 per cwt. Lean hog index for 5/31 is at $70.01 up 0.38 with a projected two-day index of $71.01, up 1.00.
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