General Comments
The livestock complex is torn at midday. Cattle contracts see mild support in various contracts while the lean hog contracts trade sideways thinking one-minute higher prices are where the opportunity lies, but then regressing only minutes later. Packers are still sitting back quietly, but their acquisition is expected to strengthen throughout the day. December corn is up 3 cents per bushel and December soybean meal is up $0.80. The Dow Jones Industrial Average is up 75.95 points and NASDAQ is up 21.28 points.
LIVE CATTLE
Live cattle contracts aren't overly optimistic about the near future but there is some support for deferred contracts. August live cattle are down $0.65 at $101.20, October live cattle are down $0.52 at $105.60 and December live cattle are down $0.50 at $109.80. As the entire market endures a lackluster day, trade is largely uneventful and lethargic in its ambition. Packers thus far have kept to themselves and are heading into Wednesday afternoon extremely quiet. More interest is expected to develop as the day progresses but thus far only a few bids have been renewed at $96. Asking prices are around $98 live, and $160 to $162 for dressed cattle.
The Fed Cattle Exchange Auction today listed a total of 1,022 head, with 422 actually sold, 600 head listed as unsold, and zero head listed as PO (Passed Offer). Only Kansas and Texas listed cattle today and the breakdown looks like this: Kansas 598 total head, with 274 head sold at $96, 324 head went unsold; Texas 424 total head, with 148 head sold at $96.25, 276 head unsold. The delivery date/weighted averages breakdown is as listed: 1-9-day delivery: 353 head total, of which 103 head sold, with a weighted average price of $96.00; 1-17-day delivery 669 head total, of which 319 head sold, with a weighted average price of $96.12.
Boxed beef prices are mixed: choice down $0.27 ($200.61) and select up $0.27 ($191.57) with a movement of 65 loads (30.65 loads of choice, 12.56 loads of select, zero loads of trim and 22.12 loads of ground beef).
FEEDER CATTLE
Feeder cattle continue to back off last week's momentum as the complex trades mostly lower into Wednesday's afternoon. August feeder cattle are down $0.17 at $141.15, September feeders are down $0.12 at $142.85 and October feeders are $0.05 higher at $143.17. The market isn't evenly responding to this week's mixed trade as the board has been mostly lower throughout the week, but feeder cattle sales continue to draw active buyers who seem more optimistic than leery.
LEAN HOGS
The lean hog complex has been indecisive in the morning's trade as earlier in the morning contracts were feeling optimistic but as the afternoon hours approach, support seems to be weakening. August lean hogs are up $0.67 at $52.10, October lean hogs are down $0.10 at $49.95 and December lean hogs are down $0.30 at $51.25. The morning could have had some of its strength derailed when cash prices came out showing losses of near $1.00.
The projected lean hog index for 7/21/2020 is up $0.78 at $49.43, and the actual index for 7/20/2020 is up $0.75 at $48.65. Hog prices are lower on the National Direct Morning Hog Report, down $0.93 with a weighted average of $32.66, ranging from $30.50 to $35.00 on 4,058 head and a five-day rolling average of $31.66. Pork cutouts total 192.97 loads with 176.09 loads of pork cuts and 16.88 loads of trim. Pork cutout values: down $4.20, $68.03.
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