Strong underlying pressure is moving through the entire cattle complex as traders back away from last week’s gains. Firm pressure developed through live cattle trade, with hog markets unable to hold early gains.
Firm pressure moving through feeder cattle trade Monday morning has sparked additional selling interest in live cattle trade. Lean hog futures have given back early buyer interest, with prices mixed in a narrow to moderate range.
Corn futures are higher in active trade. July corn futures are 7 cents higher. Stock markets are lower in light trade. Dow Jones is 56 points lower with Nasdaq down 45 points.
Limited selling interest continues to hold live cattle trade lower late Monday morning with June futures holding a 20 cent loss. The lack of aggressive selling contracts despite strong gains in corn futures and triple-digit pressure in feeder cattle futures has helped to spark additional stability through nearby live cattle trade.
Long-term demand continues to develop through the entire cattle complex traders focus on the ability to increase domestic and global beef demand through the next couple of months.
Cash cattle interest remains sluggish Monday with bids and asking prices still undeveloped. Increased interest may start to develop midweek, although trade may not develop until midweek or later.
Boxed Beef cut-outs at midday are unreported at this time.
Firm underlying pressure has moved through the entire complex as triple-digit losses are holding through the entire complex. Additional buyer support sweeping through corn and soybean markets Monday morning has added increased pressure to feeder cattle trade.
August through January futures are holding $1.25 to $1.40 per cwt losses with increased overall weakness developing in all cattle trade. It is expected that limited market activity will develop through the end of the session, although prices are likely to hold in the current weaker pattern.
Lean hog futures are mixed to mostly lower midday following the inability to hold strong early gains. June futures are leading the complex lower with $1.15 per cwt losses as traders adjust price levels following last week’s market rally. The inability to sustain initial gains helped to bring additional selling activity into nearby and deferred contracts.
There is expected to be some additional market shifts as traders balance between firm domestic demand and uncertainty of overall global economic growth. Recent news report, not only focusing on the increased demand for global pork supplies, but focusing on potential increased meat prices to consumers is starting to limit previous bullish market support seen last week.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.96 at $80.19 per cwt with the range from $72.50 to $80.19 on 5,363 head reported sold.
Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report.
Pork values surged higher with strong gains in most primal cuts. Pork cutouts added $3.82 per cwt at $89.09 per cwt with 105 loads traded. Lean hog index for 5/16 is $84.59 up 0.39, with a projected two-day index is unchanged.