Firm buyer support quickly moved back into lean hog trade as support in April lean hog futures sparking underlying support and posted triple-digit gains in most contract months. Cattle futures shifted lower early, but have bounced higher following light to moderate gains in spot-month contracts. Corn futures are higher in sluggish trade. May corn futures are 1/4 cent higher. Stock markets are lower in light trade. Dow Jones is 17 points lower with Nasdaq up 2 points.
LIVE CATTLE:
Mixed trade has developed midday Tuesday following early-morning losses. The lack of follow-through pressure following Monday's triple-digit losses in April contracts has created a sense of market stability as traders focus on continued strong beef demand as well as potential for cash market gains at the end of the week. Light pressure is seen in deferred futures, although the tone of the market is starting to stabilize. Cash cattle trade is quiet as bids and asking prices are still undeveloped. This may continue over the next couple of days as traders look for increased activity late in the week. Boxed Beef cut-outs at midday are higher, $0.74 higher (select) and up $0.80 per cwt (choice) with light movement of 54 total loads reported (36 loads of choice cuts, 11 loads of select cuts, no loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Limited pressure is holding midday in nearby lean hog trade. This has pushed prices 15 to 25 cents per cwt lower in spring and early summer contracts as traders focus on limited direction through the entire complex. The lack of follow through support seen Monday is causing traders to focus on recent pressure in live cattle trade, and the potential for follow through losses over the near future.
LEAN HOGS:
Strong follow-through buyer support has moved through lean hog trade with triple-digit gains developing in most nearby contract months through the morning. Traders are not only pushing front-month April contracts further away from support levels, which is sparking renewed long-term interest, but the focus on stabilizing pork and cash hog values is helping to bring buyers back into summer and fall contracts. This is relieving some of the uncertainty surrounding demand concerns through the end of the year. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.14 at $44.77 per cwt with the range from $42.00 to $45.07 on 3,875 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork carcass stabilized Tuesday with wide price movements in select primals. Pork cutouts fell $0.06 per cwt at $62.87 per cwt with 240 loads traded. Lean hog index for 3/1 is $51.93, down $0.20, with a projected two-day index is $51.94, up $0.01.
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