Lack of trade activity is seen through livestock futures. This is bringing renewed selling pressure back into the live cattle complex. Increased trade volume may once again develop in feeder cattle and lean hog trade late in the session, although mixed prices are likely to continue. Corn prices are lower in light trade. September corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 145 points higher while Nasdaq is up 79 points.
LIVE CATTLE:
Strong pressure has developed midday with nearby contracts holding $1 per cwt losses. The overall lack of support in the complex continues to spark some increased market interest as increased volume may be seen during the last hour of trade. The retraction of Friday's gains could limit any additional longer-term support over the near future. Cash cattle markets remain quiet Monday morning with bids and asking prices still undeveloped. Show lists are generally smaller despite the expected light trade seen last week. It is likely that most trade will be delayed until the second half of the week. Beef cut-outs at midday are higher, $0.59 higher (select) and up $0.20 per cwt (choice) with light movement of 72 total loads reported (35 loads of choice cuts, 11 loads of select cuts, 14 loads of trimmings, 12 loads of ground beef).
Feeder Cattle:
Narrow price movements have been seen through the feeder cattle futures Monday morning even though early pressure developed. Prices are steady to 20 cents per cwt lower as traders look at the recent market pressure in live cattle markets, but are unwilling to chase prices lower at this point. The potential to draw early-week market stability back into the complex could bring about renewed late-week support in all cattle trade.
LEAN HOGS:
Lackluster activity is seen through the entire morning with prices remaining mixed in a narrow range. The overall lack of support in deferred contracts is limiting overall market direction and the ability to bring additional traders to the table Monday. This could keep prices choppy in a narrow price pattern through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.70 at $77.00 per cwt with the range from $72.00 to $79.50 on 5,415 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 97 loads selling with prices adding $0.22 per cwt. Lean hog index for 8/10 is at $85.25 down $0.25 with a projected two-day index of $84.78, down $0.47.
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