GENERAL COMMENTS: Livestock futures moved in a narrow range Wednesday afternoon with lean hogs backing away from firm early gains and feeder cattle moving off of moderate initial losses. The tepid market temperature was in sharp contrast to the frigid winter blast that engulfed much of the Midwest on Wednesday. The trade initially seemed to be concerned about the subzero temperatures, but then lost interest through the trading session. Cash market direction was limited Wednesday with a few token bids seen in Nebraska. Active trade is not likely to be seen until late Thursday or sometime Friday. Asking prices remain at $125 and higher live, and $200 to $203 per cwt dressed. The National Daily Direct afternoon hog report was $0.21 lower ($47-$52, weighted average $51.37) on 2,790 head sold. Corn futures were higher in light activity with the March contract up 4 cents. The Dow Jones Index was 434 points higher with Nasdaq up 154 points.
LIVE CATTLE: Narrow gains developed in live cattle futures following a limited but mixed trading range Wednesday. Futures closed the session $0.32 lower to $0.30 higher. Spot-month February was down 32 cents per cwt in light volume. After trading mixed most of the session, all other contract months moved higher in limited activity. Traders pushed the April contract to new highs for the second consecutive day. With the April contract holding at $128 per cwt, follow-through buyer support is likely Thursday as traders close out January. Beef cut-outs: mixed, $0.43 higher (select, $213.00) to down $0.08 (choice, $218.05) with moderate demand and offerings on a total of 133 loads (66 loads of choice cuts, 23 loads of select cuts, 16 load of trimmings, 27 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL: Steady. Limited direction is expected to be seen Thursday with light bids expected to redevelop through the morning in the same range as seen Wednesday. Trade is expected to be pushed off until late Thursday or sometime Friday.
FEEDER CATTLE: Feeder cattle futures bounced mostly higher as late-day buying followed stability in live cattle trade. Futures closed mixed, $0.27 lower to $0.20 higher. Limited movement in the live cattle trade and firm gains in corn futures pressured the cattle trade Wednesday. But with limited follow-through pressure, prices inched higher through the last half of the session. Follow-through buying could be seen again Thursday. CME cash feeder index for 1/29 is $142.99, down $0.08.
LEAN HOGS: Hog futures eroded on a lack of buyer interest. Futures closed $0.35 lower to $0.52 higher. Early support was unable to hold throughout the session, allowing April through July futures contracts to erode slightly in late-day trade. Traders continue to be concerned about ample supplies and uncertain demand. Though there is still hope for trade talks with China, most traders aren't willing to bet on big export gains at this point. Pork prices tumbled lower with pressure in all primal cuts other than ribs. Pork cutout values fell $1.70 per cwt, moving to $66.97 per cwt on 311 loads. CME cash lean index for 1/28 is $57.89, down 33. DTN Projected lean index for 1/29: $57.67, down $0.22.
THURSDAY'S CASH HOG CALL: Steady to $1 lower. Packers are trying to get back into a more normal routine following the extreme cold weather limiting hog movement and packer activity. Most bids are expected to be steady with limited packer reductions expected through the end of the week. Thursday slaughter is expected to hit to 405,000 head, dependent primarily on weather conditions. Saturday runs are expected to hit 310,000 head.
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