Sharp triple-digit losses have quickly swept through cattle trade with technical pressure moving through all contracts. Hog futures are mixed with very limited activity seen Wednesday.
Sharp losses have flooded through live cattle and feeder cattle trade Wednesday morning. The inability to maintain recent support has sparked a technical reversal, and quickly attracted active liquidation.
Corn futures are lower in light trade. July corn futures are 2 1/4 cents lower. Stock markets are mixed in light trade. Dow Jones is 7 points lower with Nasdaq up 3 points.
Triple-digit losses have quickly moved into live cattle trade Wednesday morning. The focus on moving June futures below initial support levels has sparked follow through technical pressure in all nearby contracts. Increased market weakness is likely to be seen through the end of the session, although at this point, traders may not move prices much lower than $2 per cwt Wednesday.
Cash cattle trade is still undeveloped Wednesday morning, although a few bids have developed. Offers are seen at $123 to $125 live and $205 dressed. This is well below asking prices of $130 live and $212 dressed, but sharp futures pressure may spark interest Wednesday afternoon.
Boxed Beef cut-outs at midday are lower, $0.14 lower (select) and down $0.40 per cwt (choice) with light movement of 93 total loads reported (53 loads of choice cuts, 20 loads of select cuts, 7 loads of trimmings, 13 loads of ground beef).
Aggressive market pressure is quickly moving through the entire cattle complex. Feeder cattle trade has led the complex lower with losses of $2 to $2.50 per cwt seen through most of the morning. May and August futures both remain $2.37 per cwt lower with the continued softness quickly moving through initial support levels, and pulling back from April gains. Little fundamental changes have developed, allowing technical shifts to lead the complex lower midweek.
Lean hog futures have bounced around in a narrow to moderate range through the entire morning. Although the aggressive liquidation has ended through the complex, traders still remain cautious about stepping back into the market. There will be increased focus on the weekly export sales report Thursday as trades will focus on the potential for increased overall support across the complex. Futures prices are mixed within a narrow range at midday with very little direction expected through the end of the session.
Cash prices are unchanged on the National Direct morning cash hog report. The weighted average price remained steady at $80.57 per cwt with the range from $73.00 to $83.00, on 7,220 head reported sold.
Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report.
Pork values continue to shift higher based on expected long term support in most primals. Pork cutouts added $0.87 per cwt at $89.79 per cwt with 152 loads traded. Lean hog index for 4/22 is $82.07 up 0.53, with a projected two-day index is unreported at this time.