Firm pressure in live cattle trade has started to bring additional widespread pressure to the cattle complex. April futures are leading the cattle market lower in limited activity. Feeder cattle futures are steady to firmly higher as cold weather is causing concerns to the cow/calf herd. Strong early morning gains in hog futures have started to erode as emotional buying based on potential china trade deals have faded due to lack of information. Corn futures are higher in sluggish trade. May corn futures are 2 cents lower. Stock markets are lower in light trade. Dow Jones is 354 points lower with Nasdaq down 71 points.
LIVE CATTLE:
April live cattle futures are eroding through the morning Monday although limited selling pressure is seen at midday as prices have pulled off of session lows due to lack of follow through selling. April futures have moved to $128.40 following a $1.15 per cwt loss at midday. The inability to break through long-term resistance levels has traders quickly reassessing market positions and the inability for further short term gains. Despite fundamental support in the complex, a potential retraction could push prices to $127 per cwt or lower without any significant technical challenges. Cash cattle markets are quiet Monday morning with bids and asking prices undeveloped and likely to remain quiet until midweek or later. Active trade will likely be pushed to the end of the week once again. Boxed Beef cut-outs at midday are higher, $1.02 higher (select) and up $2.11 per cwt (choice) with light movement of 32 total loads reported (17 loads of choice cuts, 3 loads of select cuts, no loads of trimmings, 12 loads of ground beef).
FEEDER CATTLE:
Moderate to firm buyer support is holding in deferred feeder cattle trade. This is helping to solidify additional interest in summer and fall contracts with prices 50 to 80 cents per cwt higher. Even though nearby trade is holding single-digit losses based on pressure in live cattle trade, the focus on bitterly cold weather affecting the cow herd and calving season and young calves is sparking some price support for fall contract months.
LEAN HOGS:
Initial strong gains which flooded through lean hog trade Monday morning has been slowly eroding during the morning. There is expected to be some additional market shifts during the next couple of weeks, although April futures are still showing support in order to bounce off recent support levels. The potential for a trade deal with China is creating some underlying optimism through the entire complex, but the lack of details on any deal as well as uncertainty of China's desire to import pork continues to create uncertainty through the complex. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork carcass values firmed in limited early week buying. Pork cutouts added $1.29 per cwt at $63.21 per cwt with 140 loads traded. Lean hog index for 2/28 is $52.13, down $0.51, with a projected two-day index is $51.93, down $0.20.
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