GENERAL COMMENTS:
As the market looks to the final hours of the week, the live cattle and lean hog contracts have come into some technical support. Meanwhile, the feeder cattle complex continues to be fixated on the corn market's rally and continues to trade lower. December corn is up 9 3/4 cents per bushel and December soybean meal is up $7.30. The Dow Jones Industrial Average is up 116.69 points.
LIVE CATTLE:
The live cattle contracts have turned green after trading lower every day this week, besides Monday. The market's higher tone comes as boxed beef prices are showing support in the day's midday report and as the market finds technical support at the 100-day moving average. Still, the market's slight attempt at a rally seems to come too late and be too little as the market regressed throughout most of the week and again cash cattle traded lower. August live cattle are up $0.17 at $136.35, October live cattle are up $0.20 at $142.02 and December live cattle are up $0.20 at $147.97. With no new cash cattle trade to report, it's likely that the bulk of this week's business is done with. So far this week, a light trade has taken place in most areas with Northern dressed deals marked at mostly $225, $2 lower than last week's weighted average basis Nebraska. Southern live business has been marked at mostly $135, $1 lower than last week's weighted averages.
Boxed beef prices are higher: choice up $2.00 ($269.77) and select up $1.71 ($242.52) with a movement of 50 loads (29.23 loads of choice cuts, 5.91 loads of select, 6.03 loads of trim and 8.49 loads of ground beef).
FEEDER CATTLE:
The corn market had a stellar week as it traded higher throughout the week, but the grain market's rally did put a wrinkle in the feeder cattle contracts move. The same conclusions are being drawn for Friday's market as once again the nearby corn contracts are rallying $0.09 to $0.10 higher and while the feeder cattle contracts attempted at pushing a late week rally, the market is trending most lower. August feeders are down $0.02 at $177.40, September feeders are up $0.07 at $180.27 and October feeders are down $0.017 at $182.55.
LEAN HOGS:
After being under pressure in Thursday's market, the lean hog complex is back to rallying as not only are the futures contracts trading higher but again pork cutout values are finding support. August lean hogs are up $1.65 at $120.77, October lean hogs are up $0.90 at $97.22 and December lean hogs are up $0.82 at $87.75. Given that the market is seeing widespread support ahead of the noon hour, without any attention being given to the cash market, the market could keep this momentum through closing. If pork cutout values do indeed close higher on the afternoon's report, then next week's market stands a chance at rolling into the week supported as traders and packers alike find confidence in seeing that consumer are still hungry to pork, especially in the form of bacon.
The projected lean hog index for July 28 is up $0.84 at $121.42, and the actual index for July 27 is up $0.85 at $120.58. Hog prices are not reported on the Daily Direct Morning Hog Report because of confidentiality; however, we can that 2,136 head have traded and that the market's five-day rolling average now sits at $124.33 which is $0.73 higher than Thursday's midday average. Pork cutouts total 152.84 loads with 137.79 loads of pork cuts and 15.04 loads of trim. Pork cutout values: down $0.22, $128.57.
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