GENERAL COMMENTS: Livestock futures saw narrow moves at the end of trade Wednesday as traders tested market direction. Live cattle futures hit long-term resistance at $130.10 per cwt, but pulled back on limited buyer support. Meanwhile, nearby lean hog futures held recent support on firm commercial interest. Cash cattle activity was sluggish again Wednesday with asking prices holding at $130 and higher live basis and $205 to $206 dressed. A few scattered bids developed through the day, but there is still a wide gap that needs to be closed before any business gets done. Bids Wednesday were offered at $125 live and $202 dressed. The National Daily Direct afternoon hog report was $0.04 higher ($42.50-$46, weighted average of $45.27) on 20,620 head sold. Corn futures were lower in light activity with March down 2 cents per bushel. The Dow Jones Index was 72 points lower with the Nasdaq up 2 points.
LIVE CATTLE: Live cattle futures moved in a narrow range, testing long-term resistance levels. Futures settled mixed, $0.17 lower to $0.20 higher. After testing year-long resistance at $130.10 per cwt in morning trade, the April contract moved to that level, but was unable to break through the ceiling. Market support is expected to test these price levels before the week is over. Beef cut-outs: lower, down $0.94 (select, $212.79) to down $0.21 (choice, $219.46) with light demand and moderate offerings, 128 loads (78 loads of choice cuts, 19 loads of select cuts, 11 load of trimmings, 21 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL: Steady. Despite the development of a few scattered bids midweek, the cattle market remains quiet with little indication active trade will develop until late in the week again.
FEEDER CATTLE: Light gains developed in feeder cattle futures Wednesday as traders focused on limited news and firm market support in live cattle. Futures closed $0.15 to $0.45 higher. Weakness in the grain markets combined with firm deferred support in live cattle trade to help stimulate buyer support in nearby feeder cattle trade. April led the complex higher with a 45-cent gain, as traders look for underlying support through the end of the week. CME cash feeder index for 2/26 is $140.46, up $0.16.
LEAN HOGS: Lean hog futures closed mixed ($0.52 lower to $0.40 higher) after trading in a narrow range Wednesday. Firm pressure early in the session was short-lived following the inability of traders to break through initial support levels seen early in the week. This allowed renewed buyer support to step back into the complex, moving several nearby contracts 27 to 40 cents higher. Despite continued concerns of burdensome hog supplies and building pork stocks, current prices are unable to attract traders willing to sell. Pork cutouts weakened once again, as wholesale pork prices continue to move sharply higher and lower through the last couple of weeks. Pork cutout values fell $1.39 per cwt, moving to $59.57 per cwt on 353 loads. CME cash lean index for 2/25 is $52.85, down $0.28. DTN Projected lean index for 2/26 $52.82, down $0.03.
THURSDAY'S CASH HOG CALL: Steady to $1.00 lower. Active cash buying has developed over the last two days, putting even more pressure on cash markets as packers continue to fill needed procurement slots with ease. Most bids are expected to be steady to 50 cents lower early Wednesday. Thursday slaughter is expected at 477,000 head. Saturday runs are expected near 195,000 head.
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