Lack of overall market direction is seen in the livestock market Wednesday. Lean hog futures have remained little moved during the morning, with cattle futures bouncing higher and lower through morning trade.
Cattle futures have bounced higher and lower through the morning with very little widespread market direction developing across the complex. Losses at midday are being limited by the lack of trade volume, but markets could bring about increased overall support to the complex.
Corn prices are lower light trade. December corn futures are 1 cent lower. Stock markets are lower in light trade. The Dow Jones is 8 points lower while Nasdaq is down 4 points.
Light-to-moderate losses have developed through the live cattle complex late morning following mixed moves in beef values and the inability to bring aggressive price support to the cash market in the Fed Cattle Exchange. Nearby futures are holding 5- to 40-cent losses, although trade volume remains light and will likely continue to remain sluggish through the end of the session.
Cash cattle markets are generally sluggish with the exception of the Fed Cattle Exchange auction. Over 3,200 cattle sold with prices seen from $108 to $111.50. The sale average is listed at $110.47 per cwt and slightly above last week’s average. Bids are seen in the South in feedlot country at $108 per cwt, while active trade is not expected to develop until sometime Thursday or Friday.
Beef cut-outs at midday are mixed, $0.98 higher (select) and down $1.06 per cwt (choice) with moderate movement of 96 total loads reported (42 loads of choice cuts, 15 loads of select cuts, 15 loads of trimmings, 24 loads of ground beef).
Feeder cattle futures have bounced back and forth through most of the morning with traders looking for additional support at midday, while prices in most contracts dipped 40 to 70 cents lower. A portion of the pressure is focused on profit-taking following the previous market support, but overall trade activity remains limited given the softness in beef values and sluggish moves in cash cattle markets.
Limited market activity is seen through the lean hog futures complex with prices hovering form 12 cents per cwt lower to 62 cents per cwt higher at midday. The overall lack of direction and limited interest through the week not only creates concerns about the recent market support, but also adds uncertainty as to just how much additional interest will be shown before the holidays.
Prices are expected to remain stuck in the current range during the rest of the session with very little direction developing.
Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.18 at $53.12 per cwt with the range from $45.50 to $54.00 on 4,545 head reported sold.
Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.18 at $53.12 per cwt with the range from $45.50 to $54.00 on 4,545 head reported sold
. The National Pork Plant Report reported 296 loads selling with prices falling $1.11 per cwt. Lean hog index for 12/12 is at $56.11 up $0.59 with a projected two-day index of $57.03 up $0.92.