Firm support is holding in most contracts as live cattle and lean hog futures are holding gains at midday. The overall support across the complex is likely to spark increased end-of-week buying activity. Corn prices are higher in light trade. July corn futures are 1 cent higher. Stock markets are higher in light trade. The Dow Jones is 50 points higher while Nasdaq is up 20 points.
LIVE CATTLE:
Moderate gains have continued to develop in live cattle futures with traders focusing on expected cash market support as well as firming beef values through the end of the week. Firm support has been holding, although traders are pulling back from session highs. The ability for traders to keep markets near contract highs could allow for additional end-of-week buyer support to move back into the complex. Cash cattle markets reported activity on The Fed Cattle Exchange Auction report today listed a total of 1,396 head, with 542 actually sold, and 399 head listed as unsold, and 455 head listed as PO. The state by state breakdown looks like this: KS 577 total head, with 418 head sold at $137.00; NE 315 total head, with 124 head sold at $136.50; TX 455 total head, with 0 head sold, 455 head listed as PO; CO no test; IA no test; other states (Oklahoma) 49 total head all unsold. Feedlot activity started to develop with sales seen in the North at $220 to $221 while bids in are listed at $134 to $135 in the South Additional activity is expected to be seen through the rest of the week. Beef cut-outs at midday are higher, $0.99 higher (select) and up $0.42 per cwt (choice) with light movement of 85 total loads reported (39 loads of choice cuts, 35 loads of select cuts, 1 load of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Narrow trading ranges are seen in feeder cattle futures following wide shifts both higher and lower through Thursday morning. Nearby futures are holding narrow losses while single-digit gains are holding in the deferred contract months. The inability for either buyers or sellers to establish a strong foothold in the market continues to allow for increased volatility in the complex.
LEAN HOGS:
Firm buyer support has redeveloped across the lean hog futures complex. This has continued to move buyer support back into the market with all summer contracts holding well above $81 per cwt. Nearby contracts have pulled back from session highs, although the support has been sustained based on light trade seen through the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.42 at $74.88 per cwt with the range from $72.00 to $77.00 on 3,176 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report reported 134 loads selling with prices gaining $0.20 per cwt. Lean hog index for 6/5 is at $78.90 up $0.30 with a projected two-day index of $79.10 up $0.20.
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