Mixed trade is seen through the entire complex. Narrow trading ranges are seen in all cattle markets with live cattle futures holding losses of 2 to 15 cents per hundredweight (cwt). Lean hog futures are trading in a moderate range from 60 cents lower to 52 cents higher. Corn markets are higher in light trade with September corn futures 1 cent higher. Stock markets are mixed in light trade. The Dow Jones is 196 points higher, while the Nasdaq is down 20 points.
LIVE CATTLE:
Limited pressure continues to spark light trade activity with contracts holding 10 to 15 cents per cwt. Traders continue to focus on the sharp market rally seen late last week with growing uncertainty if buyers will step back into the complex over the near future. October futures are holding a 12-cent-per-cwt loss, allowing for some needed stability to develop in the complex. Early estimates for the upcoming Cattle on Feed report released Friday afternoon peg total cattle on feed numbers at 105.3%. This will likely bring additional price shifts through the next couple of days. Cash cattle trade remains undeveloped and likely will stay that way until late in the week. A few opening bids have developed in the South at $108 per cwt live basis. Asking prices are starting to become more evident at $113 to $114 per cwt live and $180 and higher dressed. Boxed Beef cut-outs at midday are lower, $1.23 lower (select) and down $0.23 per cwt (choice) with moderate movement of 93 total loads reported (45 loads of choice cuts, 16 loads of select cuts, 11 loads of trimmings, 20 loads of ground beef).
FEEDER CATTLE:
Light buyer support has moved through the complex with September futures the only contract moving lower. This has allowed for limited activity through front-month contracts with a 45-cent loss. All other contracts posted gains of 20 to 40 cents per cwt as underlying support is starting to build through the entire complex. There may be some additional market support developing late in the day, but the focus on sluggish moves in live cattle trade and the upcoming cattle on feed report may spark some widespread market interest through the complex.
LEAN HOGS:
Very limited activity is seen through the lean hog futures complex with prices mixed to mostly lower. Traders are actively trying to adjust positions following the aggressive triple-digit gains seen in nearby contracts. October futures remain firmly higher with a 55-cent-per-cwt gain. This has continued to spark some additional softness in December and February futures holding prices 40 to 70 cents lower. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is $1.61 higher at $54.67 per cwt with the range from $45.00 to $57.50 on 6,900 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $2.24 higher at $56.15 per cwt with the range from $45.00 to $57.50 on 3,300 head reported sold. The National Pork Plant Report posted 169 loads selling on the morning report. Pork carcass values added $0.98 per cwt at $78.55 per cwt. Lean hog index for 9/17 is at $54.58, up $1.10, with a projected two-day index of $55.99, up $1.41.
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