General Comments
The livestock complex hasn't fully decided if Monday's rally is where the direct needs to lean towards again Tuesday. The lean hog complex could trade higher this afternoon as pork cutout values are slightly higher, and cash hogs are trading modestly higher as well. Meanwhile, the cattle contracts are sitting idly -- letting time pass as certainty in where prices should trade this week are slim. December corn is steady and December soybean meal is up $2.00. The Dow Jones Industrial Average is up 291.76 points and NASDAQ is up 0.88 points.
LIVE CATTLE
Live cattle contracts are in the same boat as feeder cattle - another day, but prices are trending lower. August live cattle are down $0.77 at $98.87, October live cattle are down $1.00 at $103.20 and December live cattle are down $0.92 at $107.42. Feedlots across the U.S. are praying that these hot summer temperatures end soon as immense stress is put on cattle in feedlots when temperatures near 100 degrees. So far cash cattle trade has continued to be mostly quite with bids still hard to come by. A light trade did happen in parts of South at $95 for live cattle -- fully steady with last week's business. Asking prices are firm at $100-plus in the South and $162-plus in the North.
Consigned to Wednesday's Fed Cattle Exchange are 1,224 head of cattle. Most of the lots are from Kansas with an offering of 1-9-day delivery, or 1-17-day delivery, and two lots are from Texas.
Boxed beef prices are lower: choice down $2.47 ($200.79) and select down $0.10 ($191.78) with a movement of 91 loads (42.82 loads of choice, 15.17 loads of select, 8.14 loads of trim and 25.10 loads of ground beef).
FEEDER CATTLE
Feeling tremendous pressure at the $138.00 threshold, nearby feeder cattle contracts have backed away from Monday's rally and the rest of the complex has softened even more than nearby contracts. August feeders are down $0.02 at $137.02, September feeders are down $0.45 at $137.62 and October feeders are down $0.47 at $139.05. As the market remains slim for interested traders, the market could easily swing either way as only a minimal amount of trade can affect the market greatly at this point.
LEAN HOGS
The lean hog complex has fought the same resistance that's developed in the cattle contracts but thankfully with the support from higher cash prices and a higher cutout value at midday - prices are toying with the idea of trading higher. Heading into the afternoon the complex is split trading mixed in nearby contracts and mostly higher in deferred. August feeders are down $0.27 at $51.00, October feeders are up $0.05 at $50.40 and December feeders are down $0.12 at $51.75.
The projected lean hog index for 7/13/2020 is up $0.44 at $46.08, and the actual index for 7/10/2020 is up $0.31 at $45.64. Hog prices are higher on the National Direct Morning Hog Report, up $0.27 with a weighted average of $30.72, ranging from $29.00 to $35.00 on 3,311 head and a five-day rolling average of $29.59. Pork cutouts total 227.78 loads with 210.81 loads of pork cuts and 16.97 loads of trim. Pork cutout values: up $0.58, $68.10.
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