Support continues to keep livestock contracts trading higher into the noon hour.
On Tuesday at this time the board was trading mostly mixed and right after the noon hour the complex crumbled and closed lower. Wednesday’s board could easily end up doing the same with the sheer amount of volatility and uncertainty that looms throughout the market, but for the meantime both lean hogs and feeder cattle are trading fully higher and the live cattle contracts are mixed with cash trade beginning to emerge.
March corn is down 1 cent per bushel and May soybean meal is up $4.50. The Dow Jones Industrial Average is up 110.81 points and NASDAQ is up 59.92 points.
As the live cattle contracts reach the noon hour, nearby contracts are mostly lower while deferred contracts are mildly higher. April live cattle are down $0.27 at $112.67, June live cattle are down $0.25 at $105.55 and August live cattle are up $0.05 at $105.45.
Following Tuesday’s light to moderate trade throughout most of the country, a few bids are sitting on the table at noon, but trade hasn’t really developed. Bids of $184 to $187 have been renewed by a major in Eastern Nebraska for delivery next week.
The Fed Cattle Exchange Auction reported a total of 755 head, of which 627 head sold earlier Wednesday morning. There was a total of five lots, one in Texas and four in Kansas.
Only one lot in Kansas did not sell. All started with $115 asking prices and those that sold went for $115.25, most lots were set for one-to-nine-day delivery, and one lot in Kansas is set for one-to-seventeen day delivery.
Boxed beef prices are lower: choice down $1.15 ($206.32) and select down $0.88 ($199.02) with a movement of 103 loads (73.25 loads of choice, 17.15 loads of select, 5.71 loads of trim and 7.37 loads of ground beef).
Feeder cattle contracts are making a strong move into the noon hour as nearby contracts push advancements higher and higher. March feeders are up $1.32 at $134.30, April feeders are up $1.32 at $135.45 and May feeders re up $0.77 at $136.60.
Cash cattle trade is most likely going to develop for lower prices again this week which could hinder the feeder cattle market’s push for higher prices throughout the later part of the week.
The projected two-day lean hog index is not available at this time. The lean hog market isn’t out of the clear from the coronavirus scare but a healthy cash market has its way of supporting the future’s market beautifully.
Thankfully cash prices were higher again Wednesday morning and the future’s market has been able to capture gains of $0.57 to $0.92 higher. April lean hogs are up $0.57 at $65.25, June lean hogs are up $0.92 at $80.62 and July lean hogs are $0.87 at $81.67.
Hog prices are higher on the National Direct Morning Hog Report, up $0.35 with a weighted average of $49.95, ranging from $45.00 to $51.00 on 5,051 head sold and five-day rolling average of $50.02.
Pork cutout total 191.36 loads with 167.42 loads of pork cuts and 23.93 loads of trim. Pork cutout values: down $1.27, $64.70.