Active gains have developed in lean hog and feeder cattle trade with each market holding triple-digit gains at midday. The ability to rebound from recent lows is helping to spark renewed interest through the entire livestock market. Corn futures are higher in light trade. September corn futures are 1 3/4 cents higher. Stock markets are lower in light trade. Dow Jones is 368 points lower with NASDAQ down 72 points.
LIVE CATTLE:
Limited activity is once again seen in live cattle futures trade Wednesday morning. But strong gains seen in feeder cattle trade has sparked additional buyer activity in all live cattle trade. This move higher could spark as a technical reversal in the live cattle complex, with October futures breaking away from month long lows of $106.22 per cwt. As of now, the move higher is still considered a market correction, but confirmation to the upward movement in the complex through the end of the week is expected to stimulate additional commercial interest in order to establish a firming short term trend higher. Cash cattle activity remains generally quiet with a few token bids in the South at $109 per cwt. A few early asking prices are seen in the South at $113 and higher, and $185 and higher per cwt in the North. Although most negotiated trade is expected to be pushed off until Thursday or Friday, there is the potential that a few deals may develop yet Wednesday. Boxed Beef cut-outs at midday are higher, $0.15 higher (select) and up $0.65 (choice) with active movement of 98 total loads reported (49 loads of choice cuts, 20 loads of select cuts, 7 loads of trimmings, 22 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have shifted higher midday Wednesday following the inability for initial morning pressure to spark renewed cattle market interest midweek. Triple-digit gains have held at midday, with traders focusing on pulling away from last week's lows. The ability to string together two or three positive trading sessions in nearby feeder cattle is expected to spark some additional underlying support through the entire cattle complex. Although buying has slowed at midday, the ability for nearby contracts to hold prices above $140 per cwt should spark additional support through the end of the week.
LEAN HOGS:
Lean hog futures have shifted higher Wednesday morning helping to push prices away from long term lows. Traders still see the market as extremely weak, but the recent pressure has left the complex oversold even though export trade markets remain bearish. The initial move higher at opening bell opened the door for additional price momentum with nearby contracts trading $1.50 to $2 per cwt higher, following the lead of October contracts. It is uncertain if additional technical support will develop through the rest of the session, although traders remain focused on pushing prices away from recent market lows. Cash prices lower on the National Direct morning cash hog report. The weighted average price is down $2.03 at $73.09 per cwt with the range from $64 to $78 on 6,112 head reported sold. Pork values shifted higher following a strong triple-digit gain in belly cuts. Pork cutouts added $0.70 per cwt at $89.43 per cwt with 151 loads traded. Lean hog index for 8/5 is $84.19, down 0.49, with a projected two-day index is unreported at this time.
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