Firm pressure is quickly moving into the cattle contracts following firm support seen early through the morning. The lack of follow through support holding in the session could add pressure to all markets. Lean hog futures is adding market softness to the complex. Corn prices are lower in light trade. September corn futures are 6 cents lower. Stock markets are higher in light trade. The Dow Jones is 133 points higher while Nasdaq is up 4 points.
LIVE CATTLE:
Light to moderate pressure is developing in live cattle futures following early support which first moved into the cattle market Tuesday. This inability for buyers to stay involved in the market is concerning to the market and could spark follow through losses in the last hour of trade. Front month August futures are holding single digit losses, although deferred futures have posted more aggressive pressure with increased momentum may continue to be seen. Cash cattle activity is still quiet with bids and asking prices poorly defined. It is expected that asking prices will start at $122 live basis and $192 dressed although active trade will likely be delayed until midweek or later. Beef cut-outs at midday are mixed, $1.44 higher (select) and down $0.20 per cwt (choice) with light movement of 55 total loads reported (32 loads of choice cuts, 9 loads of select cuts, 9 loads of trimmings, 6 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have backed away from early gains at midday as traders continue to chop around in a moderate trading range Tuesday morning. August futures have posted a $1.30 per cwt loss adding to the limit losses seen Monday. The pullback from firm early morning gains continues to create uncertainty on the stability of the market that some thought would be established in the market through the morning session. Further pressure could spark additional liquidation through the end of the trading day.
LEAN HOGS:
Light trade is seen in lean hog futures markets with prices moving very little since opening bell. Nearby futures are holding moderate gains with August futures holding a firm gains of 65 cents per cwt holding near $81 per cwt. Deferred futures continue to hold narrow losses as extremely light trade volume is seen in all deferred contract months. This will limit additional movement through the rest of the session and may hinder movement through the rest of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.91 at $81.48 per cwt with the range from $77.00 to $83.74 on 4,349 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report reported 259 loads selling with prices gaining $1.53 per cwt. Lean hog index for 7/21 is at $91.13 down $0.54 with a projected two-day index of $90.44, down $0.69.
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