Firm gains have quickly moved into cattle trade midday Monday with early gains in feeder cattle trade sparking additional underlying support through the entire complex. Live cattle trade is holding narrow to moderate gains based on the support in feeder cattle futures. Early pressure redeveloping in lean hog futures is keeping prices sluggish, while short covering is limiting overall market pressure. Corn markets are lower in light trade. March corn futures are 1 1/4 cents lower. Stock markets are lower in light trade. Dow Jones is 328 points lower with Nasdaq down 101 points.
LIVE CATTLE:
Light price support has slowly trickled into the complex through morning trade with nearby contracts holding 20 to 40 cent gains at midday. The ability to spark additional feeder cattle buying is helping to bring about increased market support in all cattle trade the last week of January. Traders seem to be focusing on market stability in nearby and deferred live cattle trade, which may keep gains minimal over the next couple hours. Cash cattle activity remains sluggish with very limited movement expected through the first half of the week. Active trade is likely to be pushed off until Thursday or Friday similar to the last couple of weeks. Boxed Beef cut-outs at midday are higher, $0.63 higher (select) and up $0.59 per cwt (choice) with light movement of 67 total loads reported (40 loads of choice cuts, 5 loads of select cuts, 13 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Active buyer support is seen Monday morning in feeder cattle trade as traders try to offset pressure seen late last week. The focus on price support moving into all cattle markets is helped by the potential for increased underlying support through the entire complex. Spot month January futures remain under light pressure, as trade interest has moved into March and April futures. March contracts are trading 72 cents per cwt as firming support through the entire market.
LEAN HOGS:
Light to moderate pressure has redeveloped through the morning across lean hog trade. There remains increased overall nervousness concerning trade activity and the ability to sustain strong pork demand through the rest of the year. Early short covering moved into lean hog trade, helping to create some temporary market stability, but the market remains generally bearish with little long-term direction developing. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.29 at $51.55 per cwt, with the range from $46.00 to $52.00 on 3,927 head reported sold. Cash prices lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.35 at $50.94 per cwt, with the range from $46.00 to $52.00 on 892 head reported sold. Pork carcass values are higher on the morning report with prices adding $1.98 per cwt at $69.65 per cwt with 123 loads traded. Lean hog index for 1/24 is $58.50, unchanged, with a projected two-day index is $58.22, down 0.28.
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