Friday Midday Livestock Market Update - Hogs Maintain Firm Gains

GENERAL COMMENTS:
Firm follow-through gains are seen through lean hog futures following the aggressive limit gains that developed Thursday. The tone of the market remains bullish as traders extend gains off of recent long-term lows. Cattle markets remain mixed in a narrow to moderate trading range with little new market direction developing Friday. Corn markets are lower in light trade activity. September corn futures are 2 cents lower. Stock markets are mixed in active trade. The Dow Jones is 53 points higher while Nasdaq is down 24 points.

LIVE CATTLE:

Moderate market moved are seen in live cattle trade with nearby contracts trading steady to 50 cents higher, while deferred contracts are trading steady to 20 cents per cwt lower. The overall lack of support in deferred markets has limited the overall support through the entire complex late in the week. Traders are also focusing on the lack of cash market support in the market, which could leave prices unable to shift higher in the near future. Cash cattle trade is starting to develop in the North with dressed trade of $173 per cwt seen through the morning. This is generally $2.50 per cwt lower than last week. With early sales little changed from bids seen earlier in the week, it indicates that the market tone has weakened, leaving other markets uncertain through the rest of the day. Bids remain at $108 live basis, as more interest is expected through the rest of the day. Boxed Beef cut-outs at midday are higher, $0.23 higher (select) and up $2.20 per cwt (choice) with light movement of 58 total loads reported (27 loads of choice cuts, 11 loads of select cuts, 8 loads of trimmings, 13 loads of ground beef).

FEEDER CATTLE:

Light trade has developed in cattle futures Friday morning with feeder cattle trade focusing on limited volume, but helping to sustain the underlying buyer support that has developed through the week. Prices are mixed from 27 cents per cwt lower to 25 cents per cwt higher. This may add some additional underlying activity to the complex early next week, but traders seem to be content with allowing prices to coast into the weekend, given the narrowly mixed trading range Friday morning.

LEAN HOGS:

Firm gains have continued to develop across the lean hog complex. This is adding overall support to the entire complex although there is some disappointment suspected through the market that prices are not able to continue on the aggressive path higher following limit gains Thursday. But the limited volume seen Friday is also keeping most traders unwilling to quickly step back into the market before the weekend break. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.86 at $40.52 per cwt with the range from $39.00 to $42.00 on 3,784 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.86 at $39.69 per cwt with the range from $39.00 to $41.50 on 566 head reported sold. The National Pork Plant Report posted a total of 135 loads selling with cutout values gaining $0.28 per cwt at $68.77 per cwt in the morning report. Lean hog index for 8/15 is at $54.21 down 1.02 with a projected two-day index of $52.94, down 1.27.