GENERAL COMMENTS:
It's been a lackluster Friday as the market is merely watching paint dry ahead of Friday's close. The lean hog complex is dancing around resistance in its spot month, trying to decide if it will close slightly above or below the resistance point, but the cattle contracts seem set on a lower trend through closing. December corn is down 4 1/4 cents per bushel and December soybean meal is down $12.00. The Dow Jones Industrial Average is up 553.37 points.
LIVE CATTLE:
Heading into Friday's afternoon, the live cattle contracts are retreating as the market sits idle before the week's end. No more interest has developed in the cash market and it's appearing like this week's trade is going to be light like the past two weeks. Unless packers buy considerable volume of cattle Friday afternoon, they run the risk of getting short bought again. Asking prices for cattle left on showlists is $138 in the South and $232 plus in the North. This week Southern live trade has been marked at mostly $137, which is about steady with last week's weighted averages. Northern dressed deals have been at mostly $230, about $2 lower than the previous week's weighted averages basis Nebraska. August live cattle are down $0.65 at $134.72, October live cattle are down $0.40 at $139.52 and December live cattle are down $0.87 at $145.42.
Boxed beef prices are higher: choice up $0.82 ($268.57) and select unchanged ($241.91) with a movement of 52 loads (24.65 loads of choice, 16.00 loads of select, 5.85 loads of trim and 5.94 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are trending lower Friday afternoon as traders seem unwilling to do much more ahead of the week's end. After the invigorating rally that the market accomplished earlier in the week, which was then complimented and supported by the strong selling of feeders in the countryside, the market's morale has turned stronger despite the board trending lower Friday afternoon. However, over the last two years, we've learned that the livestock contracts have become more comfortable trending higher and supporting rallies when both the futures market and cash markets work together, which is also what's made the recent rally in feeders so perfect. Heading into next week's market, it's likely that buyers continue to gobble up any feeder cattle available as they bleakly understand that the market isn't going to have as many numbers to sort through in the months ahead. If the cash market can continue to see support, traders may deem higher trade appropriate again next week despite what outside markets do. August feeders are down $2.02 at $176.87, September feeders are down $1.37 at $180.25 and October feeders are down $0.97 at $182.85.
LEAN HOGS:
The August lean hog contract is again flirting with resistance at $110.00 as the market trades hesitantly, contemplating whether it should just trend fully lower with the rest of the market or aim for a slightly higher close ahead of the week's end. August lean hogs are up $0.55 at $110.12, October lean hogs are down $0.30 at $93.05 and December lean hogs are down $0.52 at $84.50. The pork cutout market isn't slacking as the weekend nears as midday prices are up $4.50 with the biggest price jump been in the lion cuts as they're heading into the afternoon up $7.41, ham prices are close behind with a $6.87 advancement from Thursday.
The projected lean hog index for July 14 is up $0.76 at $114.15, and the actual index for July 13 is up $0.59 at $113.39. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $3.40 with a weighted average of $115.27, ranging from $111.00 to $127.00 on 3,696 head and a five-day rolling average of $118.95. Pork cutouts total 107.18 loads with 94.79 loads of pork cuts and 12.39 loads of trim. Pork cutout values: up $4.50, $123.01.
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