Spread trading continues to take place between the August and later hog futures contracts. The action today could solidify the idea that the bottom could be in for hog futures. Corn futures are again under pressure with September down 9 cents. The Dow is down 31 points while the NASDAQ is down 22 points.
LIVE CATTLE:
Futures are under pressure, but seem to be holding well. The market seems to be at a threshold for the time being likely waiting to see if higher cash trading will develop and cut-outs will trend higher. There may not be too much to push the market one way for the other prior to cash trading and the cattle on feed report on Friday. Cash cattle is still in the early stages of seeing who will blink first. Bids remain steady to higher at $112 to $113 with dressed bids at $184 to $186. Offers are $114 with dressed at $188. Boxed beef cut-outs were higher with choice up $0.64 per cwt and select up $1.09 per cwt. There were a total of 66 loads reported (32 loads of choice cuts, 19 loads of select cuts, 6 loads of trimmings, and 9 loads of ground beef.
FEEDER CATTLE:
Feeder cattle have been under pressure after a higher opening, however August has climbed back near unchanged. The inability of live cattle to move higher keeps some pressure on feeders. The feeder cattle index today is $140.46 compared to $141.08 yesterday.
LEAN HOGS:
Spread trading continues between August and later contracts. August is down about $0.70 while October is up nearly $1.00 with later contracts posting higher gains. There is renewed hope China will purchase U.S. pork soon due to significantly higher prices in the country. U.S. pork production seems to be decreasing and expected to be 2-3 percent above last year declining from the previous pace of 6-8 percent. Cash prices are lower on the National Dairy Direct morning report. Cash is reported $1.10 lower with a weighted average price of $67.51 and a range of $57.00 to $71.00. The National Pork Plant report posted 234 loads selling 221 loads of cuts and 13 loads of trim/process. Carcass value increased $1.86 per cwt at $74.76 per cwt. The lean hog index for 7/12 at 70.73, unchanged from the previous day with a projected 2-day index of $70.62, down $0.11.
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