Narrowly mixed trade is holding in all livestock markets as sluggish market activity, due to light volume and general lack of direction Friday morning, is keeping most traders on the sidelines. Following wide-ranging triple digit moves across the market earlier in the week, traders seem to be willing to take a breather at this point and assess market conditions; although very little additional fundamental or technical direction will likely be available before stepping back into the market following the weekend. Corn prices are higher in light trade. July corn futures are 4 cents higher. Stock markets are higher in light trade. The Dow Jones is 92 points higher while Nasdaq is up 66 points.
LIVE CATTLE
Narrow trading ranges are holding in live cattle futures midday Friday, with August futures slipping 12 cents per cwt, while the rest of nearby contracts able to inch higher with narrow gains of 2 to 15 cent per cwt support. The overall lack of interest in the market following the triple-digit rally that developed Thursday seems to focus on the general lack of market volume and points to traders pushing trade decisions off until early next week. Cash cattle trade remains essentially in the books following moderate trade in all areas Thursday. There has been a few bids seen in the north through the morning and light scattered trade at steady money in Nebraska. The ability to gain access to additional cattle by packers, while not changing the tone of the market, is not likely to affect the overall market structure through the end of the week. Beef cut-outs at midday are lower, $0.20 lower (select) and down $1.07 per cwt (choice) with active movement of 114 total loads reported (61 loads of choice cuts, 28 loads of select cuts, 13 load of trimmings, 12 loads of ground beef).
Feeder Cattle:
Despite the aggressive price shifts seen through the week, traders remain extremely sluggish Friday, with mixed activity holding feeder cattle markets 10 cents lower to 10 cents higher at midday as traders seem anxious to end the week with very little activity or direction seen at all through the Friday trading session. The inability to bring any trade interest or volume into all cattle markets Friday is somewhat surprising given the fact that overall market volatility through the week has been extremely high.
LEAN HOGS
Mixed trade remains through lean hog futures with traders unwilling to move significantly in either direction at the end of the week. July through October futures are holding moderate buyer support as traders cover positions heading into the weekend with gains of 30 to 47 cents per cwt. The overall lack of support in the complex continues to be apparent in deferred contracts with prices mixed in a narrow range, from 12 cents lower to 15 cents lower. Light volume is expected to be seen through the rest of the trading session as traders allow markets to limp into the weekend. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.26 at $85.44 per cwt with the range from $82.00 to $87.50 on 2,252 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $2.81 at $85.25 per cwt with the range from $83.00 to $87.50 on 64 head reported sold. The National Pork Plant Report reported 152 loads selling with prices gaining $0.92 per cwt. Lean hog index for 7/5 is at $92.40 up $0.47 with a projected two-day index of $92.46 up $0.06.
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