Active buyer support quickly moved into lean hog trade as traders look for longer-term support developing from the announcement that trade talks with China will continue to develop and President Trumped delayed any additional tariffs for the time being. Corn futures are lower in light trade. July corn futures are 8 cents lower. Stock markets are higher in light trade. Dow Jones is 95 points higher with NASDAQ up 75 points.
LIVE CATTLE:
Narrow gains are seen in most live cattle futures with traders focusing on increased underlying support through the entire cattle market. The firm pressure in corn trade over the last two sessions is sparking increased underlying weakness through the entire complex. August futures have backed away from early support with a 25 cent loss, while other nearby contracts are still hanging onto narrow to moderate gains of 7 to 47 cents per cwt. The lack of support in beef values late last week has continued to add uncertainty through the entire live cattle complex with trader interest expected to remain subdued through the entire week. Cash cattle markets remain quiet with bids and asking prices still unavailable. It is uncertain just how much activity will develop during the holiday-shortened week, but both sides will do their best to wrap up any needed business by Wednesday in order to enjoy the long holiday weekend. Boxed Beef cut-outs at midday are higher, $0.66 higher (select) and up $0.62 per cwt (choice) with moderate movement of 71 total loads reported (32 loads of choice cuts, 19 loads of select cuts, 3 loads of trimmings, 17 loads of ground beef).
FEEDER CATTLE:
Active follow-through support is seen in all feeder cattle trade following additional pressure in corn trade following the bearish USDA report, the lack of direction on planted corn acres continues to kick any production adjustments down the road when it comes to prevented planted acres. This is eroding price levels in corn trade, quickly bringing traders back to the complex. Although prices have quickly backed away from session highs, the underlying support in the complex remains firm as traders look for additional direction during early July.
LEAN HOGS:
Active buyer support is moving into lean hog trade with nearby contracts holding gains above $2 per cwt. This surge higher was sparked by the weekend announcement that a "cease-fire" is in effect between the U.S. and China when it comes to the trade war. Although there are no details of what or when exports due to the agreement, the hope is that China will step into the market to buy U.S. pork to meet their demand. Although triple digit gains are holding in most contracts, August through December remain most impacted by the flurry of buying activity. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.14 at $68.02 per cwt with the range from $60 to $69.70 on 7,825 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork values trickled lower despite widely mixed primal cut prices. Pork cutouts fell $0.15 per cwt at $73.69 per cwt with 165 loads traded. Lean hog index for 6/27 is $76.05, down 1.21, with a projected two-day index is $74.97, down 1.08.
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