Light to moderate support has moved into the cattle complex. This has moved live cattle and feeder cattle futures higher, despite strong early-morning losses in live cattle trade. Lean hog futures remain under significant pressure, although trade volume remains limited. Corn prices are lower in light trade Tuesday. July corn futures are 8 cents lower. Stock markets are higher in light trade. The Dow Jones is 150 points higher while Nasdaq is up 11 points.
Strong early pressure in the live cattle trade has quickly been shifted to midday gains with live cattle futures trading 10 to 40 cents per cwt higher. The overall lack of pressure in boxed beef values has helped to draw underlying support back into the market. It is uncertain if this renewed buyer activity will hold through the end of the session, but traders seem to be focusing on establishing longer term market stability through the rest of the week. Cash cattle activity still remains quiet with no bids developing at this point. This is not unexpected given the defensiveness of futures trade and strong market support in cash trade last week. A few asking prices are seen with prices at $116 live basis and $185 dressed. It is likely that active trade will not be seen until late in the week. Boxed Beef cut-outs at midday are mixed, $0.01 lower (select) and up $0.50 per cwt (choice) with moderate movement of 98 total loads reported (48 loads of choice cuts, 22 loads of select cuts, 16 loads of trimmings, 11 loads of ground beef).
Narrow market shifts have slowly developed through the feeder cattle futures with prices holding a narrowly mixed trading range through most of the morning. Prices have bounced higher at midday, with overall support moving into the live cattle complex helping to regain some buyer activity. There is growing support through the end of the session that is likely to spark some increased overall buyer activity through the complex.
August lean hog futures have continued to lead the market lower with morning losses of $2.57 per cwt. The overall lack of support in the complex is quickly not only adding to market liquidation, but will continue to add uncertainty to the overall cash and futures trade through early July. Other nearby contracts are trading 45 cents to $1.80 per cwt lower, with most contracts holding triple-digit losses. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.23 at $76.21 per cwt with the range from $69.00 to $77.00 on 7,411 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.46 at $76.38 per cwt with the range from $69.00 to $77.00 on 4,572 head reported sold. The National Pork Plant Report posted 217 loads selling with carcass values falling $0.50 per cwt. Lean hog index for 7/6 is at $81.92 down 0.19 with a projected two-day index of $81.67, down 0.25.
Rick Kment can be reached at email@example.com
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