GENERAL COMMENTS: Early support gave way to limit gains in lean hog futures. All nearby contracts are locked in $3 per cwt gains, allowing for expanded trade limits Thursday. Feeder cattle futures led cattle markets higher, focusing on potential supply tightness. Corn futures are higher in light activity. May futures gained 1/4 cent per bushel. Dow Jones Index is 141 points lower with Nasdaq up 5 points.
CASH MARKETS: Cash cattle activity is still quiet as asking prices remain at $130 and higher live and $210 per cwt dressed. It may be Friday afternoon following the cattle on feed report before active trade develops, although some token bids are expected to develop over the next day or so. National Daily Direct afternoon hog report is $2.79 higher with a weighted average of $60.38 per cwt. Full range of $54.00 to $64.00 per cwt on 9,853 head sold.
LIVE CATTLE: Light but supportive buying moved into live cattle trade as traders focus on strong gains in hog and feeder cattle markets. ($0.45 to $0.87 higher). Limited interest is seen through the cattle complex, although traders continue to focus on firm underlying fundamental support and the potential that strong demand will be met by tighter supplies through the end of the year. This may spark additional buyer activity, but at this point it appears that traders are unwilling to step back into the market and move prices above resistance levels. Beef cut-outs: lower, $0.83 lower (select, $218.63) and down $0.66 (choice, $228.67) with light demand and moderate offerings, 100 loads (52 loads of choice cuts, 18 loads of select cuts, four load of trimmings, 26 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL: Steady. Limited activity is expected until Friday, although packer interest should improve through the day Thursday.
FEEDER CATTLE: Strong triple-digit gains have moved into deferred feeder cattle trade (steady to $1.95 higher). Despite March contracts being unchanged, sharp buyer support moved into summer and fall contracts. There continues to be underlying support based on the expectation that the calf crop will be reduced due to winter storms and flooding. However, at this point, these numbers are yet hard to define. CME cash feeder index for 3/19 is $137.41 down $0.26
LEAN HOGS: Sharp gains pushed prices to limit gains as traders focus on potential demand support ($1.70 to $3 higher). Increased active support moved back into lean hog trade following continued fundamental support moving cash hog and pork cutout prices higher. The expectation that additional export sales to China may develop in Thursday's report has also sparked aggressive buyer activity in all contracts. This moved April through August futures $3 per cwt higher with increased support through the entire complex. Pork cutouts slipped slightly following strong primal pressure. Pork cutout values fell $0.09 per cwt, moving to $74.05 per cwt on 274 loads. CME cash lean index for 3/18 is $57.54, up $1.00. DTN Projected lean index for 3/19 $59.22, up $1.54.
THURSDAY'S CASH HOG CALL: Steady to $2. Continued desire to increase packer speed given the aggressive futures and pork value support is likely to spark additional strong bids through the end of the week. Thursday slaughter is expected at 477,000 head. Saturday runs are expected at 165,000 head.
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