The cattle contracts have been fortunate to attract some trader interest heading into Tuesday afternoon as earlier the market was fairly grim. The corn market's hesitancy has helped boost feeder cattle futures and, keeping with their trend this week, the lean hog market is rallying while traders are around after last week's fall. December corn is up 3/4 cent per bushel and December soybean meal is down $5.60. The Dow Jones Industrial Average is up 55.02 points and NASDAQ is up 20.89 points.
LIVE CATTLE:
The live cattle market is posting a shiny rally heading into Tuesday afternoon, but the market still doesn't have a comfortable gauge on what packers intend to do this week. With last week's disappointing movement, one would like to believe packers would be forced into committing desperately needed supplies this week through the cash market. But with the Fourth of July affecting processing speeds this week and most likely next week as well, packers have a little bit of wiggle room. Asking prices in the South have been pegged at $124-plus; the North has not yet disclosed what their asking prices will be. Nevertheless, the strength that's developing on the market's technical front is encouraging and could help push a stronger undertone in the cash market. June live cattle are up $0.15 at $122.25, August live cattle are up $0.45 at $122.05 and October live cattle are up $0.37 at $127.90. Bids could begin to develop lightly throughout Tuesday afternoon, but it's looking like this week's business may hold off until at least Wednesday.
Boxed beef prices are lower: choice down $4.62 ($292.81) and select down $2.50 ($271.46) with a movement of 95 loads (56.96 loads of choice, 18.76 loads of select, 5.64 loads of trim and 13.74 loads of ground beef).
FEEDER CATTLE:
Corn futures are still rallying modestly in the spot July contract, but the feeder cattle market is eyeing the mixed to weaker trade throughout the other contracts as a positive for feeders to trade higher. August feeders are up $1.55 at $157.77, September feeders are up $1.20 at $160.27 and October feeders are up $1.12 at $162.17. The market is going to see sales throughout the countryside moderately tested early this week and then tested moderately again late next week; but for the days around the Fourth of July, the market will see very few cattle trade. Most sale barns take the week off as buyers don't want to haul the cattle on a holiday and then have a crew ready to process them upon arrival. It's easiest to simply let the holiday come and pass and then jump back into business as usual.
LEAN HOGS:
Lean hog futures are rallying again as the market has finally been able to coax traders into feeling comfortable after last week's substantial deterioration. July lean hogs are up $2.00 at $106.95, August lean hogs are up $0.87 at $103.65 and October lean hogs are up $0.67 at $88.07. But just because the technical side of the market is finding clarity, doesn't mean fundamentals have life completely figured out. Slower processing speeds have been seen thus far for the week, which comes as a determent in getting consumers the product they yearn for. Eventually if continued over a long-period of time, this could negatively weigh on the cash market if supplies build.
The projected CME Lean Hog Index for 6/25/2021 is down $1.24 at $114.19, and the actual index for 6/24/2021 is down $2.19 at $115.43. Hog prices are lower on the National Direct Morning Hog Report, down $0.11 with a weighted average of $110.37, ranging from $110.00 to $113.00 on 2,830 head and a five-day rolling average of $115.46. Pork cutouts total 181.59 loads with 159.93 loads of pork cuts and 21.66 loads of trim. Pork cutout values: up $3.41, $118.54.
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