Firm midday pressure has continued to be seen through the entire complex as traders are looking for any sense of market stability across the complex. Triple-digit losses have quickly developed in lean hog futures as traders continue to focus on early week pressure with traders backing away from market stability which developed in early May. Corn futures are lower in light trade. July corn futures are 2 3/4 cent lower. Stock markets are lower in light trade. Dow Jones is 41 points higher with Nasdaq up 8 points.
LIVE CATTLE:
Firm losses have quickly replaced early mixed trade through the live cattle complex with October through June futures holding triple digit losses. The overall lack of support in the complex is testing long term support levels once again as traders are quickly backing away from any sense of stability that attempted to develop Tuesday. Midday selling has now moved nearby contracts below short-term levels set Monday, with limited ability to keep markets showing further price erosion and widespread liquidation. The entire complex remains extremely oversold, allowing for increased uncertainty through the entire complex. Cash cattle interest remains sluggish Wednesday morning following light to moderate trade in most areas Tuesday. Trade developed in the South at $120 per cwt live basis and north at $195 to $196 dressed basis. These prices are $2 to $3 per cwt lower than last week, and replicate the recent pressure across the cattle complex. Additional trade is expected in the North especially, with light bids redeveloping at $120 live and $190 to $195 dressed. Boxed Beef cut-outs at midday are lower, $4.08 lower (select) and down $1.01 per cwt (choice) with moderate movement of 99 total loads reported (43 loads of choice cuts, 28 loads of select cuts, 17 loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Firm pressure has once again moved through feeder cattle futures August futures holding $1 per cwt losses midday. The overall lack of support in the complex is testing Monday's support levels of $144.35 per cwt. A close below these levels would set new contract lows, creating the potential for additional long-term pressure across the complex. Although the market remains well oversold, the inability for buyers to consistently step back into the market is limited by the still bearish market trend. August through January contracts are hovering within a $2 per cwt trading range, evaporating any significant premium through the entire complex.
LEAN HOGS:
Firm losses have quickly moved back into the lean hog complex with October through February futures posting triple digit losses at midday as concerns of overall market uncertainty continues to develop. Although announcements from the White House stating that China wants to make a trade deal has helped to spark some outside market support, the overall lack of details has still limited any buyer interest through the hog complex. June futures are still holding thin losses of 20 cents per cwt at midday, with most of the focus based on long-term market direction and growing uncertainty about overall export demand growth. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.05 per cwt at $79.32 per cwt with the range from $77.66 to $82.00, on 4,420 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork values eroded lower following strong late-day support Tuesday. Pork cutouts fell $1.12 per cwt at $84.55 per cwt with 144 loads traded. Lean hog index for 5/6 is $82.63 down 0.19, with a projected two-day index $82.68 up 0.05.
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