Firm gains have continued to be seen through the cattle complex with buyers focusing on increased cash market activity through the last couple of weeks. Trade volume remains sluggish at midday, but early gains are expected to hold given the lack of additional news moving into the market. Corn prices are lower in light trade. July corn futures are 7 cents lower. Stock markets are higher in light trade. The Dow Jones is 61 points higher while Nasdaq is up 25 points.
LIVE CATTLE:
Commercial buyer support continues to steadily move into the cattle complex with prices of 10 to 80 cents per cwt seen through the entire complex. June futures remain stable with a 20 cent gain while August futures are leading the complex higher with 80 cent gains as prices have moved to $106.55 per cwt. The discount in August contracts continues to narrow slightly, although traders seem to be still focusing on the overall moves in the June contracts as they focus on potential additional cash market activity through the entire complex. Cash cattle activity remains quiet following the increased price levels late last week. It is expected that bids and asking prices will not fully develop until near midweek, which could push active trade until late in the week once again. Boxed Beef cut-outs at midday are mixed, $0.16 higher (select) and down $1.08 per cwt (choice) with light movement of 51 total loads reported (24 loads of choice cuts, 10 loads of select cuts, 6 loads of trimmings, 10 loads of ground beef).
FEEDER CATTLE:
Firm gains have continued to develop across the complex with feeder cattle trade holding a $1 rally in front-month August futures. This buyer support seen early Monday morning is helping to sustain additional trade volume through the complex and may add even more support late in the session. Feeder cattle traders continue to focus on the follow-through support seen in live cattle trade as the expectation that increased overall support will be seen through the next couple of trading sessions.
LEAN HOGS:
Light activity is seen in lean hog futures with traders maintaining a mixed price range from 20 cents lower to 50 cents higher. Support is contained in nearby contracts as traders focus on potential support in cash and pork markets through the first half of the week. The pullback in deferred trade has more to do with limited activity than any additional long term market direction. Cash prices are unavailable at this time. The National Pork Plant Report posted 99 loads selling with carcass values gaining $1.90 per cwt. Lean hog index for 6/07 is at $74.57 up 1.07 with a projected two-day index of $75.79, up 1.22.
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