Rolling into the noon hour, the livestock complex had a change of heart as all three contracts trade higher. Feeder cattle contracts and the live cattle sector are rallying with the same aggression as multiple contracts jump upwards of $1.00 higher, and the lean hog complex is seeing positive support through nearby contracts while the deferred contracts aren't as sold on the notion. Thankfully cash trade is higher in the lean hog complex Thursday morning helping to aid the movement along. December corn is up 5 1/2 cents per bushel and December soybean meal is up $3.90. The Dow Jones Industrial Average is down 367.85 points and NASDAQ is down 14.56 points.
LIVE CATTLE
Feeling optimistic after trading lower the last couple of days, the live cattle complex has resparked its momentum as is trading higher. August live cattle are up $0.47 at $99.62, October live cattle are up $0.42 at $103.92 and December live cattle are up $0.85 at $107.55. Amid the board's rally, cash cattle trade has been spotty as asking prices are hard to come by. Trade in Kansas and Texas has been aggressive early in the week but trade in Iowa and Nebraska has been slim thus far. More trade may develop into the afternoon but at noon the countryside is mostly quiet.
Thursday's export report shared that beef net sales totaled 9,500 mt for the week ending July 2, which was down 23% from the previous week and down 51% from the prior four-week average. The three primary increases were from Japan (2,900 mt including decreases of 500 mt), South Korea (2,300 mt including decreases of 500 mt) and China (1,000 mt).
Boxed beef prices are lower: choice down $0.45 ($203.38) and select down $0.86 ($194.66) with a movement of 93 loads (34.49 loads of choice, 25.29 loads of select, 18.65 loads of trim and 14.47 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts saw the strength rallying in the live cattle contracts and opted to hop on board and make a run while the support is circulating. August feeders are up $0.57 at $134.62, September feeders are up $0.37 at $136.05 and October feeders are up $0.42 at $137.20. The boards midday jump should help afternoon sales throughout the countryside. Superiors Weekend in the Rockies Sale is being hosted this year from the Texas office as restrictions from COVID-19 have made it difficult to travel. But even with that being the case, yearlings are rallying that sale upwards of $5.00 to $6.00 stronger and continuing to add to the list of phenomenal feeder cattle sales this spring/summer.
LEAN HOGS
The lean hog complex is seeing the biggest push in nearby contracts and equivalently the same rallying support throughout other facets of the market -- cash hogs are up and pork cutout values are up over $4.00 at midday. July lean hogs are up $1.50 at $45.55, August lean hogs are up $2.05 at $50.00 and October lean hogs are up $1.57 at $50.37. Seeing that the day's rally is widely supported through the different factors, the market may have a chance of closing with the same momentum.
Pork net sales of 31,500 mt were reported for 2020, which was down 20% from the previous week but up 6% from the prior four-week average. The three primary increase were from Mexico (9,100 mt including decreases of 300 mt), China (8,100 mt including decreases of 4,500 mt) and Japan (5,300 mt including decreases of 200 mt).
The projected lean hog index for 7/8/2020 is down $0.17 at $45.18, and the actual index for 7/7/2020 is down $0.55 at $45.35. Hog prices are higher on the National Direct Morning Hog Report, up $0.30 with a weighted average of $29.23, ranging from $24.00 to $31.13 on 6,055 head and a five-day rolling average of $29.06. Pork cutouts totaled 155.90 loads with 134.65 loads of pork cuts and 21.25 loads of trim. Pork cutout values: up $4.45, $71.61.
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