Follow-through buyer support has quickly moved into the hog complex. This has pushed nearby contracts $1 per cwt higher through most of the morning. Additional weakness in feeder cattle trade is creating pressure in live cattle markets.
Strong gains seen in lean hog futures trade is being offset by moderate to strong market weakness that has developed across the feeder cattle market. There is limited volume seen at midday and markets are expected to remain quiet through the end of the session.
Corn markets are lower in light trade. December corn futures are 4 cents lower. Stock markets are higher in light trade. The Dow Jones is 345 points higher while Nasdaq is up 153 points.
Light to moderate losses have held through the morning with very limited activity seen across the entire complex. Nearby futures are leading the market lower based on firm pressure seen in feeder cattle trade, while deferred contracts are holding very limited pressure due to overall lack of interest in the market.
Cash cattle activity appears to be done for the week following light to moderate trade in all areas Thursday. Cash cattle activity is light with only a few token bids in the North at $172 dressed basis. Asking prices are still not fully established and may not be seen until midweek. Active trade is likely to not develop until late in the week.
Boxed Beef cut-outs at midday are higher, $0.95 higher (select) and up $0.52 per cwt (choice) with moderate movement of 79 total loads reported (37 loads of choice cuts, 21 loads of select cuts, 9 loads of trimmings, 12 loads of ground beef).
Strong losses are still holding across feeder cattle trade with prices $1 to $1.15 per cwt lower in nearby futures focusing on previous market losses. Slightly lighter pressure is seen through the rest of the feeder cattle market with limited trade focusing on the narrow to moderate pullback in grain markets, but unwilling or unable to spark any significant support in the complex.
Firm gains continue to hold through the morning, although limited activity has redeveloped over the last couple hours of trade. This is holding gains in nearby contracts at $1 per cwt, with increased buyer support likely to redevelop across the rest of the complex. At this point, trade volume is expected to remain sluggish with additional moves likely to be range bound over the near future.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.46 lower at $59.80 per cwt with the range from $54.00 to $61.00 on 5,746 head reported sold.
Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $0.15 higher at $60.16 per cwt with the range from $54.00 to $61.00 on 2,045 head reported sold.
The National Pork Plant Report posted 244 loads selling on the morning report. Pork carcass values gained $0.45 per cwt at $81.95 per cwt. Lean hog index for 10/12 is at $68.75 down 0.24 with a projected two-day index of 68.59, down 0.16.