Firm buyer support moved back into lean hog trade following aggressive triple-digit losses during early trade. This may help to rebound hog futures through the end of the week. Cattle trade is mixed in a narrowly mixed range. Corn futures are lower in light trade. May corn futures are 3 3/4 cents lower. Stock markets are higher in light trade. Dow Jones is 154 points higher with Nasdaq up 97 points.
Narrow trading ranges are holding in live cattle futures following the pullback from early gains. There is limited interest through the entire complex with traders focusing on underlying buyer support. But limited volume is likely to keep prices shifting in a narrow to moderate range through most of the session. Cash cattle markets are quiet Tuesday morning. A few bids are starting to develop at $130 live and $212 dressed. It is expected that trade will be pushed to the last half of the week. Boxed Beef cut-outs at midday are higher, $0.26 higher (select) and up $0.25 per cwt (choice) with light movement of 73 total loads reported (38 loads of choice cuts, 15 loads of select cuts, 15 loads of trimmings, 5 loads of ground beef).
Mixed trade is seen through feeder cattle trade with prices hovering in a narrow range. Although May futures are holding a strong $1.25 per cwt loss, the underlying pressure in the complex is based more on lack of trade. The rest of the complex is mixed within a single-digit range, allowing for traders to focus on potential market stability over the next couple of days.
Lean hog futures have quickly turned around through the morning following additional news reports of African swine fever limiting production in China. This has pushed prices form $1.50 per cwt lower to 30 to 80 cents higher. There may be some additional support developing through the complex through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.61 at $79.60 per cwt with the range from $73.00 to $83.00, on 2,710 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork values firmed with strong underlying support. Pork cutouts added $1.30 per cwt at $89.16 per cwt with 215 loads traded. Lean hog index for 4/19 is $81.51 up 0.52, with a projected two-day index is $82.07 up 0.53.
Rick Kment can be reached at firstname.lastname@example.org
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