Wednesday Midday Livestock Market Summary - Strong Losses Develop Midweek

Firm pressure has been seen through the entire livestock complex through the morning with triple-digit losses seen in lean hog and feeder cattle trade. The lack of buyer support returning to the complex could spark some additional underlying through the remainder of the week. Corn markets are lower in light trade. December corn futures are 1/2 cent lower. Stock markets are mixed in light trade. The Dow Jones is 1 point higher while Nasdaq is down 1 point.

LIVE CATTLE:

Mixed trade is seen midday Wednesday with October futures holding a 17 cent per cwt gain, while all other contracts are firmly lower. The underlying pressure that is developing in feeder cattle trade has sparked some additional weakness through the entire cattle complex. Limited market activity is expected to be seen through the end of the session, with prices likely to hold current trading ranges. Cash cattle interest remains sluggish with a few bids seen in the North. Live bids are seen at $110 while dressed bids are $172 to $174 per cwt. Asking prices are still hard to firmly pin down, but have been heard around $114 live basis in the South. Active trade is likely to not develop until late in the week. Boxed Beef cut-outs at midday are mixed, $1.02 lower (select) and up $0.22 per cwt (choice) with moderate movement of 103 total loads reported (55 loads of choice cuts, 19 loads of select cuts, 13 loads of trimmings, 15 loads of ground beef).

FEEDER CATTLE:

October feeder cattle futures are holding a single-digit gain at midday, although strong losses near $1 per cwt are seen through the rest of the complex. This is adding to the overall uncertainty through the complex, with traders looking for additional direction through the entire cattle market. January through April futures are holding triple digit losses with the overall pressure focusing on general market weakness through the entire feeder cattle complex.

LEAN HOGS:

Triple-digit losses have quickly moved into nearby lean hog futures with December contracts setting the tone for the lower moving markets with prices $1.70 per cwt lower. Traders still remain focused on outside market direction and recent shifts in fundamentals. This could add even more weakness later in the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.52 lower at $59.40 per cwt with the range from $53.00 to $61.00 on 6,425 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $1.94 lower at $57.82 per cwt with the range from $55.00 to $60.50 on 1,255 head reported sold. The National Pork Plant Report posted 244 loads selling on the morning report. Pork carcass values fell $1.37 per cwt at $79.50 per cwt. Lean hog index for 10/15 is at $68.59 down 0.16 with a projected two-day index of 68.17, down 0.42.

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