Strong pressure seen in livestock markets has been replaced by firm gains in feeder cattle trade at midday. This may help to bring additional market support back to the complex through the end of the session.
Feeder cattle futures have quickly moved higher as buyers move into the complex. The ability to replace the early morning pressure is creating some market attention, although it is uncertain the gains will stick. Strong triple-digit pressure has developed in lean hog futures as markets turn sour Monday.
Corn prices are lower in light trade. March corn futures are 4 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 34 points higher while Nasdaq is up 36 points.
Mixed trade is seen through live cattle futures with the surge in feeder cattle prices allowing for a few buyers to slowly step back into the market and replace early price pressure. It is uncertain if the narrow gains will hold or if additional buyer support will trickle back into the market.
Cash cattle markets are undeveloped with bids and asking prices unavailable at this point. It is likely to be midweek or later before active interest moves into the market.
Beef cut-outs at midday are mixed, $0.14 lower (select) and up $0.34 per cwt (choice) with light movement of 35 total loads reported (20 loads of choice cuts, 9 loads of select cuts, no loads of trimmings, 6 loads of ground beef).
Feeder cattle futures have rallied at midday following dismal market direction early in the session. Nothing significant has changed through the morning, but seller interest slowly ran out of gas, allowing for buyers to flood the market and fill the vacuum. This could quickly change through the end of the session as buyer depth appears to be thin and may not hold through the end of the session.
Sharp losses have swept through lean hog futures trade as the focus on increased market losses in all nearby contracts. There continues to be uncertainty about the ability to regain market support over the near future given pressure in cash markets and overall lack of early market support in the rest of the cattle trade.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.21 at $58.99 per cwt with the range from $53 to $60 on 5,899 head reported sold.
Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.20 at $59.30 per cwt with the range from $53 to $60 on 2,684 head reported sold.
The National Pork Plant Report posted 133 loads selling with carcass values gaining $0.05 per cwt. Lean hog index for 12/07 is at $65.48 up $0.18 with a projected two-day index of $65.17, down $0.31.