Lean hog trade is stuck in a narrow range following the lack of follow-through selling activity Wednesday morning. This is keeping prices stable despite the late morning pullback in cattle trade. Early support in live cattle futures has eroded, although volume remains very light through the entire complex. Corn markets are lower in light trade. March corn futures are 3/4 cent lower. Stock markets are lower in light trade. Dow Jones is 20 points lower with Nasdaq down 19 points.
LIVE CATTLE:
Light volume is seen through the morning Wednesday, which is allowing traders to focus very little on long-term market direction and adjust positions through the morning. Early gains developed across the complex, but this created some additional late-morning pressure as buyer orders were quickly filled, allowing a vacuum to push prices lower. Nearby contracts are holding 40-to-50-cent losses, while the rest of the market is contained to 12-to-17-cent losses. It is likely that additional narrow market shifts will develop through the end of the session with traders still comfortable with price levels hovering in the top end of the current market range. Cash cattle activity remains undeveloped Tuesday with bids and asking prices unavailable. It is expected that most trade will be pushed to the last half of the week. Feedlot managers are slow to float asking prices as the supportive moves in futures trade is likely to firm market prices as the week continues. Boxed Beef cut-outs at midday are mixed, $0.10 lower (select) and up $0.62 per cwt (choice) with light movement of 63 total loads reported (32 loads of choice cuts, 9 loads of select cuts, no loads of trimmings, 22 loads of ground beef).
FEEDER CATTLE:
Light pressure has slowly but steadily moved into feeder cattle trade late Wednesday morning. This has allowed for increased but consistent pressure in all nearby contracts with feeder cattle futures holding 50-to-60-cent losses in all contracts through November. Limited buying support has trickled into the soybean complex through the morning, but underlying pressure in feeder cattle trade continues to focus on moderate supplies of cattle throughout the market.
LEAN HOGS:
Limited buyer support slowly trickled into lean hog futures Wednesday morning as limited direction and light volume continue to be seen through the entire complex. Traders are looking for additional direction in cash and pork markets through the week, although limited activity early in the day may keep most traders searching for information from the afternoon reports. Summer contracts are holding steady to limited gains, which is offsetting narrow losses. The combination of limited activity and direction in most outside markets is keeping trade uneventful in hog futures. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork carcass values are lower on the morning report with prices sliding $1.63 per cwt at $64 per cwt with 216 loads traded. Lean hog index for 2/4 is $57.36, down $0.05, with a projected two-day index is $57.16, down $0.20.
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