Triple-digit gains have quickly flooded back into the complex. Feeder cattle futures are the most aggressive, with prices in nearby September and October futures holding gains above $2 per cwt. Corn markets are sharply lower following the USDA report in light trade activity. September corn futures are 12 1/2 cents lower. Stock markets are mixed in light trade. The Dow Jones is 71 points higher while Nasdaq is down 40 points.
LIVE CATTLE:
Strong gains have continued to move into the live cattle futures with triple digit gains seen in October and December futures. October live cattle futures are holding $1.25 per cwt gains with increased buyer support moving into all contracts. There continues to be increased overall support through all livestock futures. Cash cattle trade is sluggish, although packer interest is starting to improve midweek. Bids are seen at $106 live and $168 dressed midday Wednesday. Initial asking prices are starting to trickle into the market Wednesday late morning at $111 to $112 live and $175 and higher dressed. Boxed Beef cut-outs at midday are lower, $1.18 lower (select) and down $0.99 per cwt (choice) with moderate movement of 86 total loads reported (40 loads of choice cuts, 11 loads of select cuts, 4 loads of trimmings, 13 loads of ground beef).
FEEDER CATTLE:
Active buyer interest quickly moved into the feeder cattle futures with front month futures surging over $2 per cwt higher despite limited interest early in the session. All contracts through April 2019 are holding triple digit gains with the overall support quickly developing across the market as traders try to work through the aggressive double-digit losses in corn trade. There continues to be increased weakness through the grain market which will lower overall production costs.
LEAN HOGS:
Strong buyer support has quickly moved into the complex following aggressive buyer support in the cattle complex. Although trade volume remains moderate at best, the pressure that has been seen early in the week. This has moved prices near $56 per cwt in spot month October contracts. October and December futures are holding triple digit gains, each prices $1.50 per cwt higher through the morning following limited buyer activity. There is expected to be some follow through support moving back into the market. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is $0.72 higher at $46.79 per cwt with the range from $40.00 to $50.00 on 6,734 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $0.53 higher at $48.16 per cwt with the range from $40.00 to $50.00 on 3,436 head reported sold. The National Pork Plant Report posted 245 loads selling on the morning report. Pork carcass values added $1.00 per cwt at $70.24 per cwt. Lean hog index for 9/10 is at $47.55 up 0.55 with a projected two-day index of $48.49, up 0.94.
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