Cattle buying activity is quickly moving back into the complex with nearby contracts are holding gains near $1 per cwt in live cattle futures. Feeder cattle futures have posted narrow gains in nearby futures with the strongest support seen in late-fall contracts. Corn markets are higher in light trade. December corn futures are 1 cent higher. Stock markets are lower in light trade. The Dow Jones is 524 points lower while Nasdaq is down 183 points.
LIVE CATTLE:
February live cattle futures have sparked additional buyer support through the entire complex. February futures are leading the market higher with a $1.07 per cwt rally. This has moved prices back to $121.22 per cwt. This continues to leave the live cattle market hovering within the wide sideways trend, although there seems to be some additional underlying buyer support seen through the entire market Tuesday morning. The focus on potential support in beef values is helping to spark some additional late day gains Tuesday, which may help to solidify trade support through the rest of the week. Cash cattle activity is still undeveloped through the morning with bids and asking prices yet to be seen. It is expected that packer interest will improve through midweek, but trade may not develop until the last half of the week. Boxed Beef cut-outs at midday are mixed, $1.63 lower (select) and up $1.11 per cwt (choice) with active movement of 99 total loads reported (58 loads of choice cuts, 22 loads of select cuts, no loads of trimmings, 19 loads of ground beef)
FEEDER CATTLE:
Firm buying has quickly moved into feeder cattle futures with the most significant support seen in late 2019 contract months. The overall focus on long term beef demand is being tempered with feed costs associated with the recent moves in the grain complex. Most contracts are trading steady to 20 cents per cwt higher, although the underlying support seen from the rally in live cattle trade is the main driver of buyer support late morning.
LEAN HOGS:
Moderate to strong pressure has continued to develop through the morning with February futures leading the market lower with a $1 per cwt loss. This is helping to set the weaker tone seen through the complex with traders now seeming more uncertain as to just how any trade truce with China will create any short term market support and even more uncertainty as to how overall demand will change long term. Deferred futures seem to be much more volatile with losses anywhere from 20 to 80 cents per cwt lower based on trade activity in the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.59 lower at $48.94 per cwt with the range from $45.00 to $49.87 on 5,341 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $0.55 lower at $48.32 per cwt with the range from $47.50 to $49.00 on 3,030 head reported sold. Pork carcass values gained 0.19 per cwt at $70.84 per cwt on 248 loads. Lean hog index for 12/03 is $56.36, down 0.06, with a projected two-day index is $56.38, up 0.02.
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