Steady buyer support has moved through all
livestock trade with nearby gains in live cattle futures solidifying the
overall cattle complex as light to moderate volume is seen through the
complex. Mixed trade in a narrow range through the lean hog complex has
limited overall direction in the market midday Wednesday. Corn markets
are higher in light trade. March corn futures are 1/2 cent higher. Stock
markets are higher in active trade. Dow Jones is 385 points higher with
Nasdaq up 145 points.
LIVE CATTLE:
Firm gains have quickly and steadily moved into
nearby live cattle trade with lightly traded December contracts holding
72 cent gains, while February futures are 67 cents higher at midday.
This overall support in the complex continued to focus on recent gains
in feeder cattle trade, but the overall expectation that traders look
for firming fundamentals to support the market through the end of the
year. All but June contracts are trading higher, although most contracts
are holding single-digit gains based on very limited trade volume in
many of the late month contract months. The firmness in February futures
is the main focus of most traders. A move above $123 per cwt at closing
bell is likely to help spark some follow through support later in the
week. Cash cattle trade still remains undeveloped although a few bids
have surfaced with prices at $185 to $187 per cwt dressed. Asking prices
remain at $121 to $122 live and $190 and higher dressed. It is likely
to be Thursday or Friday before active trade is seen, although more
interest is very likely the rest of the afternoon Wednesday. Boxed Beef
cut-outs at midday are mixed, $0.31 higher (select) and down $2.83 per
cwt (choice) with moderate movement of 94 total loads reported (52 loads
of choice cuts, 18 loads of select cuts, 6 loads of trimmings, 19 loads
of ground beef).
FEEDER CATTLE:
Follow through buyer is slowly developing in
feeder cattle trade Wednesday. Firmness in corn prices is limiting
overall buyer activity as traders seem to have backed out of the
leadership role seen early in the week, and now are content following
gains in live cattle trade. This is keeping prices 30 to 50 cents per
cwt higher as the firm undertone seen Tuesday continues, but momentum
seems to be lacking midweek. Market consistency is the main driver of
the recent gains Wednesday morning with prices likely to hover within
the current tight trading range through the rest of the session.
LEAN HOGS:
Limited market direction is seen Wednesday
morning through the entire lean hog complex. The focus on firming grain
market trade is helping to spark some underlying support move back into
the hog complex. The move higher in soybean prices is more of a reaction
to the rumors that China buying is starting to begin, and the hope that
this will carry over to the hog complex is supporting price levels.
Markets remain in a narrow trading range with prices 17 cents lower to
25 cents higher, as very light volume is seen through the complex. Cash
prices are lower on the National Direct morning cash hog report. The
weighted average price is $0.20 lower at $46.40 per cwt with the range
from $42.00 to $47.21 on 6,537 head reported sold. Cash prices are lower
on the Iowa/Minnesota Direct morning cash hog report. The weighted
average price is $0.43 lower at $45.95 per cwt with the range from
$42.00 to $46.50 on 3,502 head reported sold. Pork carcass values are
unavailable at this time. Lean hog index for 12/10 is $55.98, down 0.14,
with a projected two-day index is $55.54, down 0.44.
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