Markets have moved mostly lower Wednesday morning with live cattle trade hovering in a narrowly mixed range. Strong triple-digit losses have developed in feeder cattle and lean hog trade as the focus on additional market liquidation has sparked increased market movement through the entire complex. Corn markets are higher in light trade. March corn futures are 2 cents higher. Stock markets are higher in light trade. Dow Jones is 155 points higher with Nasdaq up 21 points.
LIVE CATTLE:
Narrowly mixed trading ranges have continued in live cattle futures despite strong pressure through the rest of the livestock market. Prices have remained mixed through most of the morning, but contained in a 20 cent per cwt trading range in all nearby contracts. Even though buyer interest has been hard to sustain Wednesday, the focus on recent market support is helping to create needed stability through the entire complex. Cash trade still remains undeveloped, although a few token bids have slowly trickled into the market with dressed bids of $197 per cwt. Asking prices are starting to become more evident through the morning with prices listed at $127 to $130 live and $198 to $200 dressed. Active trade is still expected to be delayed until sometime Thursday or Friday. Boxed Beef cut-outs at midday are mixed, $0.85 higher (select) and down $0.05 per cwt (choice) with light movement of 82 total loads reported (50 loads of choice cuts, 11 loads of select cuts, 10 loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Triple-digit losses have developed in feeder cattle contracts with nearby contracts holding losses of $1 to $1.45 per cwt. This pullback in price levels has created some increased concerns about follow through pressure based on increased corn market prices. The focus on readily available cattle numbers through the spring and summer is not only depressing price levels, but has eliminated any premium in the market with January and March futures not trading just pennies apart, while all contract through May contained in a $1 per cwt price spread. Limited activity is expected to be seen through most contacts through the rest of the session.
LEAN HOGS:
Sharp losses have quickly flooded into the complex Wednesday morning with nearby contracts holding $2.30 to $2.50 per cwt losses through late morning. Trade volume has slowed through the last half of the morning although the bearish tone in the market continues to add uncertainty to the entire complex. Nearby losses have broken through nearby support levels as markets shifting below January lows through the morning. This could add additional weakness through the rest of the session, and likely the end of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.06 at $51.38 per cwt with the range from $47.00 to $53.00 on 6,409 head reported sold. Cash prices lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.50 at $50.97 per cwt with the range from $47.00 to $53.00 on 2,579 head reported sold. Pork carcass values are higher on the morning report with prices gaining $0.20 per cwt at $70.53 per cwt with 215 loads traded. Lean hog index for 1/14 is $57.65, up 0.44, with a projected two-day index is $58.02, up 0.37.
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