Moderate to strong buyer support is moving into the cattle complex with traders focusing on the ability to push front month live cattle futures $1 per cwt higher. Pressure is seen in hog markets as traders quickly back away from gains seen Thursday. Corn markets are mixed in light trade activity. September corn futures are 1 1/2 cents lower. Stock markets are mixed in light trade. The Dow Jones is 131 points lower while Nasdaq is up 2 points.
LIVE CATTLE:
Live cattle markets have found some weak support with front-month futures holding a $1 per cwt gain late in the session. This move higher has helped to spark some underlying buyer activity in all nearby contracts, although trade volume remains extremely limited and traders look for additional direction through the rest of the month. Cash cattle trade remains undeveloped following additional bids at $103 to $106 per cwt live and $168 to $171 dressed. Trade should develop sometime later in the afternoon. Asking prices are still seen at $110 and higher live while dressed asking prices are seen at $173 and higher. Boxed Beef cut-outs at midday are mixed, $0.03 higher (select) and down $1.77 per cwt (choice) with moderate movement of 82 total loads reported (41 loads of choice cuts, 12 loads of select cuts, 20 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Firm gains have slowly developed through the feeder cattle complex. This is helping to spark some additional buyer activity through the market, although traders may find very limited follow-through interest through the end of the week. September contracts are holding a $1.17 per cwt gain, with prices nearing $153 per cwt following the underlying support across the entire complex.
LEAN HOGS:
Firm losses have continued to hold across the lean hog complex with prices 70 cents to $1.22 per cwt lower in most nearby contracts. There is very limited support seen in the market as most contracts have quickly evaporated any support seen Thursday in the market. Other than October and December contracts which posted triple-digit gains, the building weakness in the market may add even more pressure early next week. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is $0.12 higher at $38.39 per cwt with the range from $36.00 to $40.00 on 2,969 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 235 loads selling on the morning report. Pork carcass values added $1.39 per cwt at $69.16 per cwt. Lean hog index for 9/5 is at $45.92 up 0.25 with a projected two-day index of $46.01, up 0.09.
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