Sharp, triple-digit losses have eased Friday in
lean hog futures as traders focus on squaring positions ahead of month
and quarter end. Cattle markets are sluggish as prices continued to
bounce higher and lower through the morning. Cattle markets are mixed in
a very narrow range. Corn futures are lower in light trade. May corn
futures are 12 cents lower. Stock markets are higher in light trade. Dow
Jones is 111 points higher with Nasdaq up 31 points.
LIVE CATTLE:
Limited pressure has trickled into live cattle
trade at midday Friday as traders continue to adjust prices lower ahead
of month end. April futures are holding a 42-cent loss, falling to
$126.05 per cwt with limited volume seen during the morning, and even
less activity likely to develop the rest of the day. A close below
$126.07 in April futures would set additional market weakness,
indicating additional softness may quickly develop during early April.
Cash cattle activity is undeveloped following light to moderate midweek
trade. At this point only a few dressed bids have developed in Nebraska
at $204 per cwt. It appears trade may be done for the week as neither
side seems to be aggressively looking to move additional cattle before
the end of the month. Boxed beef cut-outs at midday are lower, $0.18
lower (select) and down $1.43 per cwt (choice) with light movement of 47
total loads reported (28 loads of choice cuts, 7 loads of select cuts, 6
loads of trimmings, 6 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have bounced higher and
lower through the morning with little to no consistency seen through the
complex. The sharp losses in corn markets following the USDA
Prospective Plantings report initially brought buyers back into the
complex at midmorning. But this interest quickly eroded with prices
still mixed to mostly lower as traders look for increased overall
pressure to hold through the end of the session. Traders continue to
adjust positions at month and quarter end, following an extremely
volatile month of March.
LEAN HOGS:
Follow-through pressure is seen in lean hog
futures trade Friday morning, although traders have quickly moved away
from the extremely bearish weakness as markets are mixed in a narrow to
moderate range. Initial losses expanded trading limits with deferred
futures falling more than $4 per cwt in active selling. The inability to
spark additional follow-through losses could go a long way in
stabilizing the complex at the end of the month. April futures are
holding moderate gains, while most other contracts remain $1 to $2 per
cwt lower. Even these strong losses will not trigger a market reversal
given the strong underlying gains seen over the last couple of weeks.
Cash prices are lower on the National Direct morning cash hog report.
The weighted average price fell $0.42 at $74.95 per cwt with the range
from $68.00 to $77.00, on 3,370 head reported sold. Cash prices are
unreported due to confidentiality on the Iowa/Minnesota Direct morning
cash hog report. Pork values shifted lower Friday as widespread futures
pressure limited wholesale price levels. Pork cutouts fell $0.26 per cwt
at $80.95 per cwt with 137 loads traded. Lean hog index for 3/27 is
$71.72 up $2.22, with a projected two-day index is unavailable at this
time.
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