Cattle futures are holding strong triple-digit gains in nearby contracts associated with the aggressive cash market support seen Thursday. Cash cattle markets have not seen additional trade Friday, although some additional cattle movement may develop before the end of the day. Corn prices are lower in light trade. December corn futures are 2 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 36 points higher while Nasdaq is up 30 points.
LIVE CATTLE:
Nearby live cattle futures have held gains of $2 to $2.50 per cwt through midday as aggressive buyer support has moved back into the complex following the sharply higher cash cattle trade seen Thursday. Even though nearby contracts are gaining additional market support, the overall trade volume through the end of the session is expected to remain light as well as limited buyer support in deferred futures contracts. This could set up follow up buyer support early next week. Cash cattle trade remains quiet Friday morning following the active trade seen Thursday at significantly higher money. Bids have redeveloped and are available in all areas through the morning with packers bidding $124 to $125 live basis and $192 to $195 dressed basis. Asking prices are seen at $128 and higher live basis and $197 to $200 dressed basis. Some additional trade may develop through the day Friday, although the tone of the market is expected to be set. Beef cut-outs at midday are higher, $0.13 higher (select) and up $0.53 per cwt (choice) with moderate movement of 78 total loads reported (32 loads of choice cuts, 24 loads of select cuts, 11 loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Strong triple-digit gains have continued to be seen across the complex although traders have slowly backed away from the early market support based on overall trader apathy during the end of the week. The surge in cattle futures is directly tied to sharply higher cash cattle trade. This has also retracted the positioning seen Thursday, which brings more stability into the complex while resetting new contract highs.
LEAN HOGS:
Extremely light trade is seen across the complex with prices hovering in a narrowly mixed range at midday. The inability for sharp gains in cattle markets to bring additional aggressive buying back to the lean hog complex indicates just how lackluster overall trade volume is and how cautious traders remain focusing on steady to lower cash hog markets. Prices are expected to maintain the narrow trading ranges from 20 cents lower to 15 cents per cwt higher through most of the session if not into closing bell. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.63 at $62.61 per cwt with the range from $56.50 to $63.00 on 3,011 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.90 at $62.41 per cwt with the range from $56.50 to $63.00 on 741 head reported sold. The National Pork Plant Report posted 153 loads selling with cutout values increasing $0.58 per cwt. Lean hog index for 10/31 is at $69.30 up $0.22 with a projected two-day index of $69.42, up $0.12.
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