Triple-digit buying has quickly moved into all cattle markets following front-month October futures bursting above $112 per cwt through morning activity. This has sparked widespread buyer support through all cattle markets.
Cattle futures have surged higher in active trade with front month October levels breaking out of the sideways trend seen through the entire summer. This has sparked buying activity in all cattle markets ahead of the weekend.
Corn markets are mixed in light trade. September corn futures are 1/2 cent higher. Stock markets are lower in light trade. The Dow Jones is 45 points lower while Nasdaq is down 23 points.
Sharp gains have held in live cattle futures with nearby contracts breaking through short-term resistance levels. This is helping to spark some additional buyer support through the complex.
October live cattle futures have quickly moved above the $112 per cwt that has contained the October contracts for most of the summer with prices now trading at $113.60 per cwt. The potential to spark additional commercial support through the upcoming weeks is helping to bring about strong triple-digit price support.
Cash cattle appear to be going down to the wire once again with bids developing, but no sales seen at midday Bids are ranging at $106 to $108 per cwt live while dressed bids are $168 to $170 per cwt. Asking prices are still at $111 to $112 live and $175 and higher.
Boxed Beef cut-outs at midday are mixed, $0.03 higher (select) and down $0.16 per cwt (choice) with light movement of 56 total loads reported (32 loads of choice cuts, 11 loads of select cuts, 5 loads of trimmings, 8 loads of ground beef).
Feeder cattle futures have posted additional support through the complex. The aggressive rally in nearby live cattle markets have added to the market support. October feeder cattle futures are leading the complex with a $3-per-cwt rally. With cattle markets now breaking out of the sideways trading range, there is expected to be some additional support through the complex.
Firm market support is moving into the lean hog complex with nearby contracts trading steady to $1.35 per cwt higher. Overall trade remains sluggish through the entire commodity complex, but the aggressive move higher in cattle trade is sparking some nearby lean hog interest. Deferred futures remain under light pressure, but this is not limiting the nearby buying activity.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.28 lower at $48.98 per cwt with the range from $44.00 to $55.00 on 3,872 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 161 loads selling on the morning report.
Pork carcass values added $2.28 per cwt at $73.33 per cwt. Lean hog index for 9/11 is at $48.49 up 0.94 with a projected two-day index of $50.08, up 1.59.