Strong morning gains have redeveloped in livestock futures with spot live cattle contracts once again setting new contract highs as technical support is redeveloping across the complex.
Livestock futures are showing strong buyer support with nearby live cattle and lean hog futures leading the complex higher as commercial support is moving back into the complex.
Corn markets are lower in light trade. March corn futures are 6 cents lower. Stock markets are higher in light trade. Dow Jones is 149 points higher with Nasdaq up 112 points.
Strong triple-‘digit gains have redeveloped in front month February futures, moving prices to new contract highs once again. This move higher has pushed prices to the highest level since February 2018 in the continuous price chart, as traders continue to focus on underlying buyer activity and firming spring demand through the complex.
The ability to move nearby contracts sharply higher has spilled over to all contract with deferred futures steady to 20 cents per cwt higher at midday.
Cash interest remains sluggish with bids and asking prices still hard to pin down. It is expected that most cash business will be pushed to the end of the week, although more activity from packers could start to develop midweek.
Boxed Beef cut-outs at midday are higher, $0.71 higher (select) and up $0.56 per cwt (choice) with light movement of 88 total loads reported (56 loads of choice cuts, 14 loads of select cuts, 4 loads of trimmings, 13 loads of ground beef).
Strong buyer support has followed the renewed buyer support in live cattle trade Tuesday morning as increased buyer activity has quickly swept thrugh the entire cattle market. January feeder cattle trade remains steady, while tight trading ranges have redeveloped through the rest of the complex, moving prices 50 to 70 cents per cwt higher.
The potential to focus on firm short term demand is helping to bring additional support back into the complex, driven by March futures, holding a 70 cent gain.
Firm buyer support has flooded through the entire lean hog complex with February futures leading the move higher with an 82-cent rally. Traders have slowly backed away from initial triple digit gains, although the tone of the market is firming following increased volume moving into the complex.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.24 at $51.51 per cwt with the range from $47.00 to $52.50 on 3,293 head reported sold.
Cash prices lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.23 at $51.94 per cwt with the range from $47.00 to $52.50 on 670 head reported sold.
Pork carcass values are higher on the morning report with prices gaining $1.19 per cwt at $72.38 per cwt with 242 loads traded. Lean hog index for 1/09 is $55.99, up 0.89, with a projected two-day index is $56.69, up 0.70.