Strong movement in cattle futures is helping to spark some underlying widespread market support. This could bring additional buyer activity to the market during the end of the session. Corn prices are steady to higher in light trade. March corn futures are steady Thursday. Stock markets are higher in light trade. The Dow Jones is 78 points higher while Nasdaq is up 51 points.
LIVE CATTLE:
Strong gains are seen in live cattle trade. This buyer activity is likely to help draw additional interest into nearby contracts. The triple-digit gains in feeder cattle markets and strong boxed beef support are helping to bring some needed support to nearby contracts. The price gains quickly fall off in deferred contracts with trade steady to 30 cents higher. But the overall consistency of higher prices is likely to bring additional trade back to the market. Cash cattle trade is still quiet with light bid activity slowly developing through the morning. Bids are seen at $124 once again live basis and $198 dressed. The potential for late-week trade on Friday is getting greater and greater as asking prices are still holding firm with a wide gap between the two price levels. Boxed beef cut-outs at midday are higher, $2.11 higher (select) and up $1.33 per cwt (choice) with light movement of 78 total loads reported (50 loads of choice cuts, 21 loads of select cuts, 3 loads of trimmings, 4 loads of ground beef).
FEEDER CATTLE:
Moderate to strong support quickly developed across all cattle markets. This support is expected to bring additional commercial buyer activity with traders not only focusing on outside markets, but the ability to bring trade volume back to beef fundamentals. Trade remains light to moderate, but is likely to hold through the end of the session.
LEAN HOGS:
Moderate pressure is seen in lean hog futures trade as early support developing through the first few minutes of trade has eroded. Nearby contracts are holding losses of 40 to 60 cents per cwt while slight market support is attempting to hold in deferred trade. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.68 at $66.11 per cwt with the range from $65.00 to $67.00 on 2,691 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.44 at $66.58 per cwt with the range from $65.00 to $67.00 on 267 head reported sold. The National Pork Plant Report posted 208 loads selling with carcass values falling $0.30 per cwt. Lean hog index for 2/12 is at $74.30, down 0.42 with a projected two-day index of $74.01, down 0.29.
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