Strong losses are seen in most livestock trade midday Wednesday despite the early support seen in lean hog futures. This could further erode market support over the next couple of days.
Livestock futures continue to remain under pressure as active losses have moved into cattle and hog trade. This could increase additional liquidation through the end of the week.
Corn markets are lower in light trade. December corn futures are 2 cents lower. Stock markets are lower in light trade. The Dow Jones is 408 points lower while Nasdaq is down 183 points.
Firm losses are seen through the morning Wednesday. The overall lack of support in the complex continues to quickly erode not only cattle trade, but the entire livestock complex. The market still remains in a firm uptrend based on expected late-year beef demand.
Cash cattle markets remain generally quiet with activity still likely to hold off until later in the week. A few bids have slowly developed in the North with dressed bids of $173 to $174 per cwt. Other areas remain quiet, and may stay that way until Thursday. Asking prices remain near $114 per cwt live and $180 dressed, still a wide gap from any expected bids to be seen in the near future.
Boxed Beef cut-outs at midday are lower, $0.50 lower (select) and down $0.56 per cwt (choice) with light movement of 77 total loads reported (38 loads of choice cuts, 22 loads of select cuts, no loads of trimmings, 16 loads of ground beef).
Firm triple digit losses have continued to develop across the entire complex through the morning. Even though prices have backed away from session lows, the triple-digit losses seen in all but front month October contracts is putting a bearish spin on the overall cattle complex. The concern that follow through pressure may develop through the end of the week is adding even more uncertainty to the entire market.
Early support in lean hog futures through the morning Wednesday has quickly caused some additional uncertainty through the entire complex. Buyer interest has quickly evaporated with markets holding moderate to strong losses with early 2019 contracts holding triple-digit pressure.
This may add even more uncertainty to the complex as prices reach closer to short term support levels seen last week. This could spark additional long term liquidation in nearby and deferred lean hog trade.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.53 lower at $62.76 per cwt with the range from $60.00 to $64.00 on 4,385 head reported sold.
Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $2.11 lower at $61.41 per cwt with the range from $60.00 to $64.00 on 935 head reported sold.
The National Pork Plant Report posted 200 loads selling on the morning report. Pork carcass values gained $0.45 per cwt at $79.51 per cwt. Lean hog index for 10/8 is at $69.33 down 0.03 with a projected two-day index of 69.34, up 0.01.