General Comments
Heading into Tuesday's afternoon trade, the feeder cattle and lean hog contracts have been steady in their trade while the live cattle complex has been jumpy all over the board. Some light cash cattle trade, for substantially higher money than last week's average has encouraged the live cattle contracts to trade higher into the afternoon. December corn is down 3 1/2 cents per bushel and December soybean meal is down $2.40. The Dow Jones Industrial Average is down 55.37 points and NASDAQ is up 61.52 points.
LIVE CATTLE
Live cattle prices have inched higher as there's been a little interest in the cash cattle market. Earlier throughout Tuesday's morning, contracts were indecisive in their trade as the complex was in a continuous cycle of higher, and then lower, and then higher again. August live cattle are up $0.10 at $107.00, October live cattle are up $0.30 at $110.17 and December live cattle are up $0.45 at $113.05. There's been a light (very light) trade of cattle in Kansas at $107, $3.00 higher than last week's weighted average, and packers have bid on cattle in Texas for $106. The rest of the country remains quiet and trade isn't expected to really develop until sometime Wednesday or even later in the week. With boxed beef prices continuing to scale higher, packers will most likely not argue too much about paying this week's asking prices.
Boxed beef prices are higher: choice up $2.22 ($219.48) and select is up $3.02 ($204.96) with a movement of 100 loads (49.68 loads of choice, 12.90 loads of select, 9.11 loads of trim and 27.87 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts closed lower Monday afternoon, but the contracts continue to dance around the resistance plane; closing above it one day, and below it the following. The board's higher trade is gladly accepted as the countryside has a lot of feeder cattle to move over the next two weeks with Superior Livestock Auction and Western Video Market hosting sales this week and Northern Livestock Auction hosting their sale next week. Coming as a sigh of relief and encouragement to both producers and traders, the corn's lower trend through Tuesday is helping encourage some of Tuesday's feeder cattle support. August feeders are up $0.37 at $143.10, September feeders are up $1.12 at $145.52 and October feeders are up $1.20 at $146.40.
LEAN HOGS
It was clear that the lean hog complex would fight short-term resistance at $54.00 and long-term resistance at $55.00, and as Tuesday's market trades lower the spread between nearby and deferred contracts widens once again. October lean hogs are down $1.80 at $51.72, December lean hogs are down $1.50 at $53.45 and February lean hogs are down $0.92 at $61.17. The market will most likely continue to struggle until hog prices can inch higher and an exuberant supply doesn't pressure the marketplace.
The projected lean hog index for 8/17/2020 is up $0.34 at $54.81 and the actual index for 8/14/2020 is up $0.63 at $54.47.
Hog prices are lower on the National Direct Morning Hog Report, down $0.27 with a weighted average of $37.37, ranging from $35.00 to $37.55 on 4,108 head and a five-day rolling average of $37.48. Pork cutouts total 228.67 loads with 202.58 loads of pork cuts and 26.09 loads of trim. Pork cutout values: up $0.79, $75.34.
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