Increased buyer support has quickly moved through the hog market, pushing prices to triple-digit gains. Light support is holding in the cattle trade as buyers focus on the ability to step back into the market following the long weekend.
Strong triple-digit gains are seen in hog futures which is helping to set the tone for higher moving market activity across the complex. This may bring increased trade volume to the market in all contract months through the next few days.
Corn prices are higher in light trade. March corn futures are 3/4 cent higher Tuesday. Stock markets are higher in light trade. The Dow Jones is 111 points higher while Nasdaq is up 5 points.
Narrow gains have slowly developed across the live cattle complex. The firm gains in the entire livestock market has helped to bring some needed stability to the market, although traders still remain uncertain just how much long-term buyer support will continue to be seen over the near futures.
Cash cattle activity remains quiet as both sides step into the market and assess the upcoming needs as well as the oddity of how last week’s trade developed. Although anything is possible, it is expected that active trade will not develop until later in the week and break away from the previous shift to early-week activity. This could help to put more focus on both beef values and the direction of futures trade when packers and feeders come to an agreement.
Boxed beef cut-outs at midday are lower, $0.74 lower (select) and down $0.46 per cwt (choice) with light movement of 57 total loads reported (28 loads of choice cuts, 14 loads of select cuts, 5 loads of trimmings, 10 loads of ground beef).
Feeder cattle futures have posted light support following narrow gains in the entire cattle complex. The front month gains of 65 cents per cwt has helped to draw buyers into all contracts.
Strong triple-digit gains have developed across the lean hog futures complex with nearby buying activity helping to drive additional support back into the market. Nearby contracts are holding gains from $1 to $1.60 per cwt as traders look past the recent pressure in cash markets and focus on developing increased buyer support. It is uncertain if any additional trade will be seen, or if prices will be able to move outside of the recent market range before closing bell.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.34 at $69.49 per cwt with the range from $63.00 to $70.00 on 3,148 head reported sold.
Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.18 at $68.86 per cwt with the range from $64.00 to $69.50 on 680 head reported sold.
The National Pork Plant Report posted 220 loads selling with carcass values adding $0.36 per cwt. Lean hog index for 1/12 is at $71.15 up $1.35 with a projected two-day index of $71.92, up $0.77.