Mixed livestock trade has offset early morning pressure as increased trader activity seems to have brought some calmness to the complex. There still continues to be a focus on squaring positions following Wednesday's gains, but the overall pressure in the complex remains limited. Corn markets are lower in light trade. September corn futures are 3 3/4 cents lower. Stock markets are higher in light trade. The Dow Jones is 140 points higher while Nasdaq is 75 points.
LIVE CATTLE:
Front-month October futures continue to hold a strong market loss, trading 82 cents per cwt lower Thursday morning. This is leaving additional uncertainty through the entire complex with the rest of the market mixed in a narrow to moderate range. The pullback from aggressive gains seen midweek is causing some underlying confusion in the market as traders try to wrestle with the short and long term direction of the complex. Despite the limited support in fundamentals, there is very little emphasis on pushing prices sharply lower. The longstanding sideways market trend continues to hold, which is likely to limit additional market swings to the upside in the near term. Cash cattle markets are showing more active bids moving into the complex. Although trade seems to be unable to narrow the gap between asking prices and bids. Bids are redeveloping in the same range as seen midweek with live cattle bids at $106 per cwt while dressed bids are $168 to $170 per cwt. Asking prices are still at $111 to $112 live and $175 and higher. It may be Friday before active trade develops. Boxed Beef cut-outs at midday are mixed, $0.53 higher (select) and down $0.81 per cwt (choice) with light movement of 63 total loads reported (34 loads of choice cuts, 12 loads of select cuts, 4 loads of trimmings, 13 loads of ground beef).
FEEDER CATTLE:
Sharp morning losses have quickly evaporated with prices mixed in a narrow range. Prices are stuck between 17 cents lower and 20 cents higher as traders seem to have come to terms with the recent market swings, and seem unwilling to focus on additional market pressure through the session. The pressure seen through the week in grain trade and generally bearish market outlook through the next couple of months is causing many feeder cattle traders to step back into the complex. There is growing support in deferred futures, which continue to attempt to narrow the price spread between the spot month contract.
LEAN HOGS:
Trade midday is sluggish following aggressive market gains Wednesday and an early push lower Thursday due to position taking. Following the initial flurry of activity through the complex, prices have settled down in a narrow trading range. Prices are mostly lower, although the break away from aggressive market pullbacks seen early in the day has caused some market stability through the entire market. The strong fundamental support in the complex is helping to rebuild market confidence, although the overall tone of the complex remains sluggish. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is $1.15 higher at $48.85 per cwt with the range from $42.00 to $53.00 on 6,581 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $1.08 higher at $49.95 per cwt with the range from $43.00 to $53.00 on 3,700 head reported sold. The National Pork Plant Report posted 161 loads selling on the morning report. Pork carcass values added $0.65 per cwt at $71.51 per cwt. Lean hog index for 9/11 is at $48.49 up 0.94 with a projected two-day index of $50.08, up 1.59.
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