Limited activity was seen through the entire livestock complex with lean hog trade shifting $1.50 per cwt from session lows as buyers have moved back into the complex. Cattle trade has wandered in a narrow to moderate range through most of the morning with mixed trade still keeping traders cautious Wednesday morning. Corn futures are lower in sluggish trade. March corn futures are 1 cent lower. Stock markets are lower in light trade. Dow Jones is 117 points lower with Nasdaq down 20 points.
LIVE CATTLE:
Limited activity is holding in live cattle trade. Traders are closely watching the moves in April live cattle trade, which have hit, but were unable to break through long-term resistance levels of $130.10 per cwt set in February 2018 on the continuous chart. A shift above this level will likely spark renewed market support over the near future, and could set additional buying activity in motion. April futures are holding steady at $129.92 per cwt, with little incentive to push prices lower at this point. Cash cattle bids are starting to develop through the morning as packers have became slightly more active given the underlying support in futures trade. Live bids of $125 are seen in the South, while dressed bids at $202 are holding in the North. It still may be late in the week before deals are reached as both sides are expected to hold to their position. Asking prices remain at $130 and higher live and $205 to $206 dressed. Boxed Beef cut-outs at midday are mixed, $0.67 lower (select) and up $0.18 per cwt (choice) with light movement of 77 total loads reported (40 loads of choice cuts, 10 loads of select cuts, 9 loads of trimmings, 17 loads of ground beef).
FEEDER CATTLE:
Feeder cattle trade remains stuck in a narrow trading range with limited interest developing Wednesday. Prices are hovering from 20 cents lower to 20 cents higher with very light support seen in nearby trade following live cattle futures test of long term resistance levels. Feeder cattle trades are focusing on the limited pressure in corn markets, but most interested in the ability of April live cattle futures to break through 2018 highs of $130.10 per cwt.
LEAN HOGS:
Buyer support is slowly attempting to redevelop in nearby lean hog trade with traders shaking off early market losses. Nearby contracts have traded in a wide range through the morning, moving $1.50 per cwt off initial lows. This continued support is adding confidence to the market, which still struggles with weak fundamentals based on uncertain demand growth. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.03 at $45.26 per cwt with the range from $42.50 to $46.00 on 12,295 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.02 at $45.43 per cwt with the range from $42.50 to $46.00 on 6,805 head reported sold. Pork carcass values posted additional market pressure as wholesale pork markets continue to swing back and forth in a wide range. Pork cutouts fell $2.35 per cwt at $58.61 per cwt with 208 loads traded. Lean hog index for 2/25 is $52.85, down $0.28, with a projected two-day index is unavailable at this time.
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