Light pressure remains Wednesday morning following initial follow-through pressure through the complex. Traders continue to focus on growing cattle supplies and uncertainty in pork demand.
Initial market pressure has continued to develop on Wednesday morning, but limited new market information continues to limit overall activity as well as price movement. Light pressure is likely to hold through the rest of the Wednesday session.
Corn futures are higher in moderate trade. July corn futures are 1 cent higher. Stock markets are lower in light trade. Dow Jones is 96 points lower with the Nasdaq down 33 points.
There are narrow losses in live cattle trade despite follow-through pressure in most feeder cattle trade, and concerns that growing cattle placements will continue to add bearishness to the entire complex. June futures are holding a 5-cent loss midday Wednesday with traders trying to hold support above $110.50 per cwt midweek.
Cash cattle trade is starting to develop in the South with limited volume in Kansas and Texas at $115 per cwt. This is $1 per cwt lower than last week’s prices, and may set the tone for the week. Bids are seen in the North at $115 live and $185 dressed, but so far, trade is undeveloped. Asking prices are at $117 and higher live and $187 and higher dressed.
Boxed Beef cutouts at midday are steady to higher, steady (select) and up $1.01 per cwt (choice) with light movement of 83 total loads reported (38 loads of choice cuts, 20 loads of select cuts, four loads of trimmings, 20 loads of ground beef).
Following additional strong market pressure early Wednesday morning, feeder cattle futures are mixed to mostly lower at midday. Lightly traded May contracts are holding a 60-cent gain, with traders trying to narrow the price discount in May futures compared to the rest of the complex.
Pressure in the rest of the complex is lowering prices 55 cents to 70 cents per cwt as traders try to establish support levels following the latest market tumble. Concerns surrounding increased cattle placed in feedyards through the spring is likely to add even more pressure to the entire complex through the end of the week.
Lean hog trade is under moderate-to-light pressure on Wednesday after mixed trade kept prices shifting higher and lower early in the day. June futures are leading the complex lower with the rest of the complex steady to 20 cents lower.
Lack of market direction midweek is keeping traders caught between trade uncertainty and expected growth in global demand. Narrow trading ranges are likely through the rest of the complex with traders looking for additional news throughout the complex.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $1.49 at $79.34 per cwt with the range from $72.00 to $81.00 on 4,010 head reported sold.
Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report.
Pork values slipped in light trade as primal cuts remain mixed in a narrow range. Pork cutouts fell $0.64 per cwt at $86.43 per cwt with 148 loads traded. Lean hog index for 5/20 is $84.37, down $0.22, with a projected two-day index at $84.39, up $0.02.