Livestock trade has shifted higher and lower through the morning. Initial mixed trade helped to stimulate additional buyer support through the first couple hours of trade. Market weakness has moved back into lean hog and live cattle trade, leading to increased long-term pressure midday Tuesday. Corn futures are lower in light trade. September corn futures are 1 3/4 cents lower. Stock markets are higher in light trade. Dow Jones is 78 points higher with NASDAQ up 35 points.
LIVE CATTLE:
Firm losses have increased through the morning as initial short covering seen at opening bell has eroded. This may spark some additional underlying support through the entire complex. There is likely to be some increased pressure seen during the afternoon due to pressure through the rest of the livestock market as well as weakness in outside markets. Cash cattle interest remains at a standstill with bids and asking prices still unavailable Tuesday morning. It is likely that trade will be pushed off until the second half of the week, as packer interest may not improve until Wednesday or later. Boxed Beef cut-outs at midday are higher, $0.75 higher (select) and up $1.08 (choice) with light movement of 60 total loads reported (39 loads of choice cuts, 12 loads of select cuts, 4 loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Mixed trade is seen early Tuesday as initial buyer support has softened through the morning. Although front-month August futures are holding narrow losses, the firmness in other nearby contracts is helping to bring some needed stability to the feeder cattle trade. Softness in corn prices has added to the stability in price levels, although at this point, the bearish market trend may limit additional aggressive buying activity.
LEAN HOGS:
Active pressure quickly flooded lean hog futures following the inability for initial buyer support to redevelop late morning. Lean hog futures opened mixed in a moderate trading range, but continued concerns surrounding the escalating trade war issues with China has caused renewed bearishness to move into the complex. October lean hog futures are holding $2.70 per cwt losses at midday, once again moving closer toward limit losses of $3 per cwt. This would be significant if markets close limit lower, as it would once again allow for expanded trading limits Wednesday. Although prices are still well above contract lows, the market remains in the lower end of long-term trading ranges, which may spark additional uncertainty through the entire complex. Cash prices lower on the National Direct morning cash hog report. The weighted average price is down $0.82 at $75.34 per cwt with the range from $66 to $80 on 9,778 head reported sold. Pork values surged higher due to strong gains in most primal cuts. Pork cutouts added $1.74 per cwt at $89.87 per cwt with 214 loads traded. Lean hog index for 8/2 is $84.68, up 0.04, with a projected two-day index is $84.19, down 0.49.
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