Strong buyer support quickly moved back into the cattle complex with triple-digit gains holding in feeder cattle markets while firm underlying support is starting to develop in live cattle trade. Hog futures remain mixed to mostly lower in very little trade activity through the entire complex. Corn markets are lower in light trade. March corn futures are 1 cent lower. Stock markets are higher in light trade. Dow Jones is 215 points higher with Nasdaq up 104 points.
LIVE CATTLE:
Moderate gains have quickly moved into live cattle trade as traders have seemingly backed away from the market pressure seen last week. Nearby contracts are holding gains of 70 to 85 cents per cwt, with front-month February futures leading the complex higher with an 85-cent gain. There is increased additional support that may develop through the end of the session, although the feeder cattle complex continues to be the main driver of the complex. Cash cattle activity is undeveloped midday with show list distribution and inventory taking consuming all of Monday's activities. Boxed Beef cut-outs at midday are mixed, $0.58 higher (select) and down $0.50 per cwt (choice) with light movement of 71 total loads reported (28 loads of choice cuts, 8 loads of select cuts, 18 loads of trimmings, 17 loads of ground beef).
FEEDER CATTLE:
Triple-digit gains have quickly flooded back into feeder cattle trade. This may add some additional buyer interest in all markets, which may spark some additional price gains through the week. Nearby feeder cattle trade is trading $1 to $1.30 per cwt higher with the most aggressive support seen in front-month January contracts. Very little technical market changes have been seen through the complex with early 2019 volatility seemingly sparking additional trader uncertainty.
LEAN HOGS:
Initial support in nearby futures trade has eroded through the morning following additional concerns about renewed trade activity moving into the hog complex through the rest of the month. Nearby futures are holding losses of 30 to 50 cents per cwt, although limited support is still hanging on in deferred contracts. This support is focusing on long-term demand support expected to hold through the year. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork carcass values are higher on the morning report with prices gaining $1.95 per cwt at $71.65 per cwt with 190 loads traded. Lean hog index for 1/03 is $53.63, up 0.38, with a projected two-day index is $54.50, up 0.87.
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