Wednesday Midday Livestock Market Summary - Cattle Keep Their Momentum

GENERAL COMMENTS:

The cattle contracts are currently trading higher while the hog market faces slight pressure. Still no substantial cash cattle trade has developed and likely trade will be delayed until Thursday. May corn is up 1 cent per bushel and May soybean meal is down $5.40. The Dow Jones Industrial Average is up 156.71 points.

LIVE CATTLE:

The live cattle complex is trading higher as the market finds support in stronger boxed beef prices as of late. The cash cattle market is still a question mark this week as no trade has developed, but steady tones are my guess on the week's trade. Last week cattle were able to trade anywhere from $2.00 to $4.00 higher and, with slaughter speeds reduced even more so this week, I'm led to believe prices will trade steady at best -- but time will tell. Asking prices in the South are noted at $187 but remain elusive in the North. June live cattle are up $1.62 at $185.57, August live cattle are up $1.12 at $183.92 and October live cattle are up $0.77 at $186.65.

Boxed beef prices are mixed: choice down $0.85 ($309.74) and select up $0.52 ($300.12) with a movement of 59 loads (43.08 loads of choice, 6.46 loads of select, zero loads of trim and 9.29 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is trading mostly higher, although the soon-to-expire March contract is slightly lower. All in all, the feeder cattle complex is strong after Monday's weaker close added a new support plane to the current trading range. The market continues to find support in the live cattle market's higher trend and in continued strong feeder cattle interest in the countryside. March feeders are down $0.07 at $248.90, April feeders are up $0.02 at $254.15 and May feeders are up $0.30 at $257.00.

LEAN HOGS:

Following Tuesday's sharply higher close, the lean hog complex is now trading lower. April lean hogs are down $0.70 at $84.65, June lean hogs are down $0.65 at $101.55 and July lean hogs are down $0.40 at $103.45. Without pork cutout values available, it's tough to say what the day's demand picture looks like. But demand remains one of traders' biggest focus points as demand will dictate the direction of futures. Heading into Thursday's market the export report will again be highly sought.

The projected CME Lean Hog Index is delayed from the source. Due to packer submission issues, hog prices on the Daily Direct Morning Hog Report will be delayed. Pork cutout values are also not available because of packer submission issues.