Widespread losses have swept through livestock trade Wednesday morning. Lean hog futures have led the shift lower with December contracts holding losses near $2 per cwt through most of the trading session. The lack of support in the market is creating some concern that additional pressure may develop over the coming days. Corn markets are steady in light trade. December corn futures are unchanged. Stock markets are higher in light trade. The Dow Jones is 151 points higher while Nasdaq is up 40 points.
LIVE CATTLE:
Sharp triple-digit losses have moved into live cattle trade also late Wednesday morning with December and February futures holding a $1 per cwt loss. The pull back from steady moving support over the past several trading sessions has created a swift adjustment in all livestock trade. Live cattle futures are still well above support levels and remain in the upper crust of the recent trading range. But the pullback from previous highs could quickly limit follow through support in the near future. Cash activity remains at a standstill with packers showing very little interest at this time. Bids are undeveloped, although asking prices are seen at $114 to $115 live and $180 and higher dressed. It is likely that trade will be delayed until Thursday or Friday. Boxed Beef cut-outs at midday are lower, $0.61 lower (select) and down $0.08 per cwt (choice) with moderate movement of 84 total loads reported (46 loads of choice cuts, 21 loads of select cuts, 5 loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
The aggressive downturn in livestock markets seems to be focusing less on long-term market direction, or moves in the livestock trade in general, as traders quickly back away from recent gains with the focus on outside markets. Financial markets and the stock market continues to be the attention grabber of the day with the Dow Jones Index flirting with moving to 27,000 points, which would be yet another record move. There seems to be very little support under any livestock markets at this point, with traders allowing prices to ratchet lower with strong losses through the complex. October feeder cattle futures are holding a $1.17 per cwt loss, as traders remain focused on widespread pressure in all cattle trade.
LEAN HOGS:
Sharp triple-digit losses have flooded into most lean hog futures trade Wednesday morning. Spot month October futures remain lightly traded and not following the rest of the complex as October contracts are holding at $66.65 per cwt following a 22 cent gain. All other contracts are holding triple-digit losses with December contracts setting the tone for the lower market shift as losses have been seen near $2 per cwt through much of the morning. Losses have slowly backed away from session lows, although the general trend of weaker market moves continues to be seen through the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.31 lower at $63.20 per cwt with the range from $59.50 to $64.00 on 7,928 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $0.52 lower at $63.18 per cwt with the range from $60.00 to $64.00 on 4,548 head reported sold. The National Pork Plant Report posted 166 loads selling on the morning report. Pork carcass values gained $1.46 per cwt at $81.94 per cwt. Lean hog index for 10/1 is at $67.93 up 0.67 with a projected two-day index of 68.84, up 0.91.
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