Moderate price pressure is seen in the hog complex with traders looking for increased longer-term market direction. This could limit additional volume through the rest of the session.
Mixed trade is seen in all livestock markets with traders slowly trying to back away from gains seen Monday. The overall tone of the market remains unsettled with traders concerned that additional longer term pressure may quickly move back into the market.
Corn prices are steady to lower in light trade. March corn futures steady Tuesday. Stock markets are lower in light trade. The Dow Jones is 117 points lower while Nasdaq is down 11 points.
Mixed trade is holding across the live cattle futures complex with nearby contracts steady to 12 cents per cwt higher. Deferred markets are holding light losses as the overall lack of direction in all markets is pulling buyers out of the market. There is some uncertainty as to just how much additional trade may develop over the near future and if early week gains can hold.
Cash cattle activity remains quiet with bids and asking prices still generally unavailable. Even though packers are short bought for the week, it still may not cause trade to develop until late in the week.
Boxed beef cut-outs at midday are mixed, $0.24 lower (select) and up $0.58 per cwt (choice) with light movement of 60 total loads reported (26 loads of choice cuts, 9 loads of select cuts, 5 loads of trimmings, 19 loads of ground beef).
Firm pressure has developed across the entire complex with traders focusing on lack of follow-through support in all livestock trade. Feeder cattle markets are showing weakness of 20 to 60 cents per cwt as traders may continue to back away from the complex over the next couple hours.
Lean hog futures have posted mixed to mostly lower trade activity with prices falling as much as $1.10 per cwt lower through deferred futures. Front month futures have held narrow gains through the morning, although the rest of the complex has shifted lower in moderate to active pressure. The potential to post additional market losses through the end of the session could weaken the overall market direction during the rest of the month.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $1.05 at $67.86 per cwt with the range from $61.00 to $69.00 on 5,431 head reported sold.
Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report.
The National Pork Plant Report posted 222 loads selling with carcass values adding $0.42 per cwt. Lean hog index for 2/9 is at $74.72, down 0.66 with a projected two-day index of $74.30, down 0.42.