Lean hog futures have posted sharp losses with triple-digit price losses seen in all nearby contracts Friday. This has continued to weaken the overall tone of the complex, which has turned bearish through the week. Mixed trade is holding in live cattle futures with nearby live cattle futures sustaining narrow gains, but being offset by deferred contract losses. Corn markets are higher in light trade. March corn futures are 1 3/4 cents higher. Stock markets are higher in light trade. Dow Jones is 161 points higher with Nasdaq up 84 points.
LIVE CATTLE:
Mixed trade has held in live cattle trade despite feeder cattle prices eroding and the overall lack of support in the limited cash business that has been seen so far through the morning. Nearby contracts are holding narrow to moderate gains with February futures leading the market higher with 35 cent gains. Deferred futures are holding moderate losses of 20 to 40 cents per cwt, with very light activity expected through the last hour of trade. Cash cattle business is starting to slowly develop in the North with live prices in western Nebraska and Colorado seen at $123 per cwt, which is $1 per cwt lower. Dressed business has been seen at $197 per cwt, fully steady with last week. Southern trade is still silent, with bids of $122 to $123 per cwt. These bids are being passed by feedlot managers with asking prices holding near $126 per cwt midday Friday. Boxed Beef cut-outs at midday are mixed, $0.15 higher (select) and down $0.35 per cwt (choice) with light movement of 63 total loads reported (39 loads of choice cuts, 8 loads of select cuts, no loads of trimmings, 16 loads of ground beef).
FEEDER CATTLE:
Firm losses have quickly moved into feeder cattle trade Friday morning following the inability for buyers to move back into the complex. Prices held narrow losses through most of the morning, but traders started to focus on position taking in the last couple hours of trade, allowing for increased overall selling activity to move back into the complex. This may spark some last minute market shifts before closing bell.
LEAN HOGS:
Sharp triple-digit losses have quickly and aggressively moved back into the lean hog complex with nearby contracts hovering from $1.40 to $1.70 per cwt. There is increased overall underlying bearish tones moving into all lean hog futures following the breakthrough nearby support levels. Currently April lean hog futures are trading at the lowest price since August 2018. Current prices are still nearly $3.50 per cwt above summer 2018 lows, which at this point, it appears that prices may not erode that quickly over the near future. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.03 at $51.44 per cwt, with the range from $46.00 to $52.19 on 5,422 head reported sold. Cash prices lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.10 at $50.51 per cwt, with the range from $47.00 to $52.00 on 1,116 head reported sold. Pork carcass values are lower on the morning report with prices added $0.82 per cwt at $68.09 per cwt with 142 loads traded. Lean hog index for 1/23 is $58.50, down 0.08, with a projected two-day index is $58.50, unchanged.
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