Strong buyer support has continued to move into the cattle complex with live cattle and feeder cattle markets holding firm gains through the entire morning. Hog futures continue to move lower although prices have pulled away from early market pressure as buyer support is focusing on gains seen late last week. Corn prices are lower in light trade. December corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 71 points higher while Nasdaq is up 23 points.
LIVE CATTLE:
Light to moderate buyer interest has held in live cattle futures as strong early buying in feeder cattle futures has helped to spark follow through commercial buying interest. This is bringing additional interest back into the market which has held nearby contracts 25 to 50 cents higher through the morning. Traders continue to focus on the potential to steadily add support to the entire complex as prices attempt to break through resistance levels seen through the end of August. Cash cattle markets are extremely quiet with bids and asking prices nowhere to be found. The limited trade activity last week is focusing on additional short bought packers returning to the market. But this will not likely speed up the process as cash markets is still be delayed until the second half of the week. Beef cut-outs at midday are higher, $2.10 higher (select) and up $1.25 per cwt (choice) with light movement of 62 total loads reported (27 loads of choice cuts, 9 loads of select cuts, 8 loads of trimmings, 18 loads of ground beef).
FEEDER CATTLE:
Triple-digit gains continue to hold across nearby contracts with September through January futures posting gains from $1 to $1.40 per cwt at midday. The follow through support seen in the market is helping to establish new short term highs across nearby contracts, allowing for commercial buyers to become even more aggressive as they look toward the fourth quarter of the year.
LEAN HOGS:
Sharp early trade in nearby lean hog futures has moderated greatly through the morning with prices mixed in a light to moderate range. Front month October futures still lead the market lower with a 62 cent loss. But the rest of the complex is mixed from 20 cents lower to 27 cents higher. The overall lack of direction in the market continues to focus on the sharp rebound seen late last week as traders try to sustain market stability through the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.04 at $51.87 per cwt with the range from $48.00 to $52.00 on 3,460 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 112 loads selling with prices adding $1.30 per cwt. Lean hog index for 9/14 is at $64.07 down $1.08 with a projected two-day index of $62.82, down 1.25.
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