Thursday Midday Livestock Market Summary - Cattle Keep Trading Higher, While Lean Hogs Aren't as Optimistic

General Comments

Thus far Thursday has been a day of few surprises as the market continues to trade as steadily as the day opened with cattle contracts inching higher and the lean hog complex dabbling lower. Cash cattle trade was mostly quiet Thursday morning following Wednesday's advancement, but as the noon hour approaches bids are starting to surface. December corn is up 1/2 cent per bushel and December soybean meal is down $0.10. The Dow Jones Industrial Average is down 229.60 points and NASDAQ is up 27.01 points.

LIVE CATTLE

Continuing to be fueled by a stronger feeder cattle market and a generous export report, the live cattle contracts continue to trade higher into the afternoon. August live cattle are down $0.17 at $101.27, October live cattle are up $0.37 at $106.42 and December live cattle are up $0.35 at $110.30. Cash cattle trade has been mostly quiet Thursday morning but as the afternoon nears, interest and bids are starting to develop. Nebraska has sold some live cattle at $100 and some dressed cattle for $160. Colorado has come cattle bid on at $98, but the bid has not be accepted yet.

Thursday's export report shared that net sales of 29,500 mt reported for 2020 -- a marketing-year high -- were up 89% from the previous week and 81% from the prior four-week average. The three primarily increases were for South Korea (11,500 mt, including decreases of 600 mt), Japan (10,600 mt, including decreases of 400 mt), Taiwan (1,500 mt, including decreases of 200 mt).

Boxed beef prices are higher: choice up $0.17 ($201.28) and select up $2.05 ($191.54) with a movement of 83 loads (61.90 loads of choice, 14.27 loads of select, zero loads of trim and 6.93 loads of ground beef).

FEEDER CATTLE

Feeder cattle contracts have led the cattle complex higher again into Thursday's afternoon hours. August feeders are up $1.10 at $143.07, September feeders are up $1.50 at $144.07 and October feeders are up $1.02 at $144.22. If the market can keep with its recent progression, the market will soon face the resistance again at $144. At which point the market's recent strengthen and bullish push from feeder cattle sales will have to either push past or turn submissively to that resistance level once again.

LEAN HOGS

Thursday's lean hog complex hasn't had a trade of heart as the entire market tips lower. August lean hogs are down $1.87 at $51.20, October lean hogs are down $1.47 at $48.32 and December lean hogs are down $1.37 at $49.65. The morning's cash hog trade was quiet a bit lower, but hopefully the afternoon's report will show another movement of significant trade.

The projected lean hog index for 7/28/2020 is up $1.85 at $52.95, and the actual index for 7/27/2020 is up $0.87 at $51.10. Hog prices are lower on the National Direct Morning Hog Report, down $1.16 with a weighted average of $41.04, ranging from $37.00 to $41.80 on 5,035 head and a five-day rolling average of $40.93. Pork cutouts total 223.33 loads with 193.40 loads of pork cut and 29.93 loads of trim. Pork cutout values: down $0.98, $66.93.

Pork net sales totaled 39,600 mt reported for 2020 which was up 24% from the previous week and 12% from the prior 4-week average. The three primary increases were for China (17,800 mt, including decreases of 1,200 mt), Mexico (15,400 mt, including decreases of 200 mt), Canada (2,300 mt, including decreases of 400 mt).

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