GENERAL COMMENTS:
The livestock complex is enduring a tough go to Tuesday's start as the contracts mostly trend lower into the day's afternoon, as traders seem unwilling to dip their toes into the marketplace at this point. Both the live cattle and feeder cattle contracts started the day off strong, rallying on the corn market's regression, but since then the market's weaker tone has spread wider and even pushed the cattle contracts into a downward ascend. December corn is down 33 3/4 cents per bushel and December soybean meal is down $12.40. The Dow Jones Industrial Average is down 472.08 points.
LIVE CATTLE:
The live cattle contracts aren't seeing any support in their marketplace heading into Tuesday's afternoon. Yes, Friday's market was able to close higher, but largely last week's lower tone unraveled some of the market's confidence. Having the Fourth of July weekend behind us now, everyone wants to know what July's market is going to bring? How will beef demand fare? Will processing speeds continue to run 660,000 head per week, or will speeds regress and showlists grow? The biggest theme in Tuesday's market is that it seems like there's more unanswered questions at this point than answered questions. August live cattle are down $0.82 at $133.77, October live cattle are down $0.62 at $139.35 and December live cattle are down $0.77 at $145.00. This week's showlist is mixed as there's less cattle in Texas and Kansas, but more cattle in Nebraska and Colorado. Thus far the market's not seen any real interest develop other than that there's a bid in Nebraska being offered at $145 and asking prices in the Southern Plains are noted at $140 plus.
Boxed beef prices are higher: choice up $0.35 ($264.17) and select up $0.23 ($240.70) with a movement of 35 loads (24.08 loads of choice, 4.10 loads of select, zero loads of trim and 6.35 loads of ground beef).
FEEDER CATTLE:
On a normal day, one would suspect that the feeder cattle contracts would be rallying as the corn market tumbles $0.25 to $0.33 lower to start the week off. But, as the entire commodity market faints lower, even the feeder cattle contracts are trading lower despite the corn market's plumet. August feeders are down $0.80 at $173.70, September feeders are down $0.62 at $177.02 and October feeders are down $0.65 at $179.85.
LEAN HOGS:
The lean hog complex is seeing more support grow for the nearby contracts of July and August, but the deferred months are trending lower like the rest of the marketplace. July lean hogs are up $2.05 at $111.65, August lean hogs are up $2.75 at $105.72 and October lean hogs are down $0.10 at $88.82. Seeing a wild jump in midday pork cutout values may not end up amounting to much by the day's end as anything can happen, but in the meantime a $8.28 advancement demands some attention.
The projected lean hog index for July 1 is down $0.12 at $110.58, and the actual index for June 30 is down $0.14 at $110.70. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.63 with a weighted average of $113.88, ranging from $110.00 to $124.00 on 4,150 head and a five-day rolling average of $116.23. Pork cutouts total 163.81 loads with 136.16 loads of pork cuts and 27.64 loads of trim. Pork cutout values: up $8.28, $117.03.
No comments:
Post a Comment