GENERAL COMMENTS:
Feeder cattle futures continued to move aggressively higher during Wednesday morning trade with prices $3 to $4 per cwt higher. The underlying support seen through the entire beef market and concerns overall cattle numbers will continue to be reduced rather than rebound due to drought conditions and recent fires could keep buyers bullish over an extended period. Live cattle contracts have shifted higher, but limited early month buyer interest seems to be keeping prices within current market ranges as traders seem to be unwilling to break above new contract highs, at least for now. Lean hog futures have bounced back from Tuesday's market pressure with mixed to mostly higher prices seen during morning trade. May corn is down 6 at $4.518 and May soybean meal is down $0.10 at $316.3. The Dow Jones Industrial Average is up 370.53 at 46,712.04.
LIVE CATTLE
Live cattle futures have gained additional support with $1 per cwt gains in nearby contracts based on expectations that beef prices will continue to remain strong due to tighter supplies and the upcoming summer grilling season. April contracts are holding above $244 per cwt in morning trade, although volume seems to have slowed significantly from early week. Further buyer interest seems to still be developing, especially given the firmness in outside financial markets over the past couple of days. Cash cattle markets remain undeveloped; all is quiet in feeding country at midday with bids and asking prices still not fully established. Significant trade volume will likely be delayed until Thursday and/or Friday. April live cattle are $0.93 higher at $243.95, June live cattle are $0.83 higher at $244.1, August live cattle are $0.70 higher at $240.50.
Boxed beef prices are Lower: choice down $0.69 ($394.80) and select down $0.30 ($392.63) with a movement of 73.27 loads (58.54 loads of choice, 6.21 loads of select, zero loads of trim and 8.52 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures posted additional strong gains through the morning, up to $3 to $4 per cwt higher in nearby contracts early. Trade has slowed slightly at midday with nearby contracts losing some of the initial market momentum, but an underlying firm market rally continues to hold with traders focusing on strong technical and fundamental support still well entrenched within the market. April futures are holding above $371 per cwt, but the ability for all contracts through October to hold above $360 per cwt keeps traders focused on the potential for additional upward market support in the near future. April feeders are $2.35 higher at $371.475, May feeders are $2.43 higher at $368.9 and August feeders are $3.13 higher at $367.55.
LEAN HOGS:
Lean hog futures remain mixed Wednesday morning, although buyer support is seen in spot month April, as well as late-summer contracts. With more focus moving toward the May and June contracts following the first of April, light to moderate pressure has slowly developed in these contracts. Traders remain comfortable with the current market range, but given availability of pork and market-ready hogs, buyers are hard pressed to aggressively move back into the market in the near future. April lean hogs are $0.35 higher at $90.775, May lean hogs are $0.38 lower at $96.15 and June lean hogs are $0.23 lower at $104.825. Hog prices are lower on the Daily Direct Morning Hog report, down $0.18 with a weighted average of $90.19, ranging from $89.50 to $91.00 on 1,449 head with a five-day rolling average of $90.19. Pork cutouts totaled 130.36 loads with 114.70 loads of pork cuts and 15.66 loads of trim. Pork cutout values are down $0.95 at $96.13.
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