Strong gains have developed in live cattle and lean hog futures midday Wednesday. The underlying support seen through the week is helping to spark some additional long term support back to the market. Corn prices are lower in light trade. July corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 240 points higher while Nasdaq is up 21 points.
LIVE CATTLE:
Gains have redeveloped across the live cattle complex with traders focusing on increased buyer support in all markets. The lean hog complex has led the market higher, but this is helping to bring some additional support back into the complex. June live cattle futures are holding a $1.45 per cwt gain. This may add some additional support through afternoon trade. Cash cattle interest is starting to improve with bids seen from $107 to $110 per cwt live basis and $177 dressed. Active trade is expected to be delayed until sometime Thursday or Friday. Activity on the Fed Cattle Exchange Auction Wednesday reported a total of 568 head offered with no sales developing. Boxed Beef cut-outs at midday are lower, $1.60 lower (select) and down $0.22 per cwt (choice) with light movement of 83 total loads reported (36 loads of choice cuts, 18 loads of select cuts, 11 loads of trimmings, 18 loads of ground beef).
FEEDER CATTLE:
Firm gains are seen in feeder cattle futures with nearby contracts contained to gains of 40 to 50 cents per cwt while the support in deferred contracts are reaching triple-digit gains. This may help to spark some additional underlying buyer support as traders continue to focus on the strong market gains seen in live cattle futures.
LEAN HOGS:
Sharp gains have flooded into lean hog futures trade with prices seen from $1 to $2.45 per cwt with July contracts holding the most aggressive support. There is moving prices near $80 per cwt with increased overall support seen in all summer and fall contracts. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.35 at $71.90 per cwt with the range from $66.00 to $74.00 on 4,722 head reported sold. Cash prices are unreported on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 181 loads selling with carcass values gaining $0.42 per cwt. Lean hog index for 6/04 is at $71.73 up 0.65 with a projected two-day index of $72.50, up 0.77.
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