Moderate to firm gains have slowly trickled back into the cattle complex through the morning despite follow-through selling pressure seen at opening bell. Aggressive triple-digit losses have swept through lean hog trade with December contracts leading the market lower. Corn markets are lower in light trade. December corn futures are 1/4 cent lower. Stock markets are higher in light trade. The Dow Jones is 147 points higher while Nasdaq is up 54 points.
LIVE CATTLE:
Light to moderate gains have slowly developed across the complex with front-month December contracts holding a 42 cent gain. This has moved prices 10 to 50 cents higher through the last half of the morning as traders focus on the firmness seen in feeder cattle trade. Buyers are also trying to cover short positions following triple-digit losses Monday. This may create some opportunities for additional market support to slowly develop through the rest of the week. Cash cattle activity remains quiet with a few token asking prices seen with prices listed at $118 live and $185 dressed. This may help to start the ball rolling, although at this point it is likely to be the last couple days of the week before active trade is seen. Bids may not be readily available until Wednesday or later. Boxed Beef cut-outs at midday are higher, $3.20 higher (select) and up $0.57 per cwt (choice) with light movement of 58 total loads reported (23 loads of choice cuts, 14 loads of select cuts, 4 loads of trimmings, 17 loads of ground beef).
FEEDER CATTLE:
Strong gains have moved back into feeder cattle trade through the morning following initial market pressure. Traders are focusing on trying to square positions following the aggressive triple-digit losses that developed Monday. At this point, the entire complex continues to remain under pressure even though morning gains have pushed nearby trade 80 cents higher. There could be some additional underlying support moving into the market over the next couple trading sessions, but this is still going to be skewed by the early week losses.
LEAN HOGS:
Sharp triple digit losses have flooded through lean hog trade through the complex with front month December contracts leading the market lower with a $2.10 per cwt loss. The overall lack of support in the market is creating uncertainty and volatility in the complex, although given the wide market swings over the last three weeks, prices are nowhere close to making technical moves and could continue to wander throughout the wide market range over the next few weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.42 lower at $55.93 per cwt with the range from $51.00 to $57.00 on 4,273 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $1.41 lower at $54.75 per cwt with the range from $51.00 to $57.00 on 1,130 head reported sold. The National Pork Plant Report posted 268 loads selling on the morning report. Pork carcass values fell $0.99 per cwt at $73.87 per cwt. Lean hog index for 11/2 is at $64.08 down 0.04 with a projected two-day index of 64.00, down 0.08.
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