Buyer support moved into cattle trade again Wednesday, further pushing prices away from recent lows. Hog futures were unable to hang onto early support as bearish fundamentals continue to weigh on the market.
Lean hog futures saw a strong daily reversal Wednesday, quickly pulling back from early gains and raising doubts about follow-through support through the end of the week. Cattle futures saw moderate-to-firm support with active gains in feeder cattle trade leading the complex higher. Cash cattle markets remained undeveloped with packers unwilling to actively show bids through midday.
Although asking prices still remain available in most areas at $108 live in the South and $178 dressed in the North, there continues to be a lot of uncertainty as to whether and how much cash markets will be able to improve despite the aggressive rally in beef values. Trade may be delayed until sometime Friday as both sides appear to be unwilling to actively move too quickly in this volatile market structure.
The National Daily Direct afternoon hog report was $1.41 lower ($58 to $71.50, weighted average $67.65) on 12,097 head sold.
Corn futures inched higher with September up 3 cents. Stock markets are higher in light trade with the Dow up 241 points and the NASDAQ up 71 points.