Mixed cattle trade is limiting market activity through live cattle futures Thursday morning following overall uncertainty in cash and wholesale beef direction at the end of the week. Hog futures remain firmly lower with widespread follow through losses sweeping through the complex. Corn markets are lower in light trade. March corn futures are 2 1/4 cents lower. Stock markets are mixed in light trade. Dow Jones is 87 points lower with Nasdaq up 19 47 points.
LIVE CATTLE:
Limited activity is seen through the entire live cattle complex with initial buyer support slowly eroding as the morning continued. This is leaving prices stuck in a narrowly mixed range from 27 cents lower to 20 cents higher. The pressure in nearby contracts is focusing on spillover pressure from hog trade and lack of firm gains in beef and cash cattle market development. While summer and fall contracts are supported by firming feeder cattle trade. Cash cattle trade remains undeveloped and likely will remain that way until sometime Friday. Increased bids are seen in several areas with live bids ranging from $121 to $122 per cwt with dressed bids at $195 to $196 per cwt. Asking prices remain firm at $126 to $127 live and $200 and higher dressed. Boxed Beef cut-outs at midday are higher, $0.66 higher (select) and up $0.66 per cwt (choice) with light movement of 53 total loads reported (16 loads of choice cuts, 9 loads of select cuts, 11 loads of trimmings, 17 loads of ground beef).
FEEDER CATTLE:
Strong early gains have quickly redeveloped Thursday morning with increased buyer activity seen in all nearby contract months. This is adding even more support to the complex which has been under pressure through most of January, as buyers quickly step back into the complex. March futures are leading the complex higher with a rally of 90 cents per cwt. All nearby feeder cattle contracts are stuck in a narrow range, eliminating significant interest in rolling contracts due to very narrow market premiums.
LEAN HOGS:
Firm losses have continued to develop across all lean hog futures trade with April futures once again leading the market lower, posting additional 90-cent losses at midday. April contracts have now eroded nearly $2.50 per cwt in the last three trading sessions, moving through short term support levels and sparking additional liquidation. The concern that additional pressure is developing and may continue to develop in cash and pork cutout trade is adding more fuel to the fire through the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.71 at $51.55 per cwt, with the range from $47.00 to $53.00 on 5,611 head reported sold. Cash prices lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.80 at $50.63 per cwt, with the range from $50.25 to $53.00 on 2,070 head reported sold. Pork carcass values are lower on the morning report with prices slipping $0.48 per cwt at $68.22 per cwt with 171 loads traded. Lean hog index for 1/21 is $58.33, up 0.26, with a projected two-day index is $58.58, up 0.25.
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