GENERAL COMMENTS:
Heading into the last trading afternoon of the week, the cattle contracts are trading fully higher as the market clings to the fact that cash cattle traded higher this week. Meanwhile, the lean hog contracts are trading mixed as some of the nearby contracts are attempting to break through resistance but it's unknown if they'll maintain these levels as fundamental support is touch and go this week. December corn is up 5 1/2 cents per bushel and December soybean meal is down $15.90. The Dow Jones Industrial Average is down 95.12 points.
LIVE CATTLE:
The live cattle contracts are pushing for higher prices heading into Friday's afternoon as the market still clings to the fact that cash cattle were able to trade higher this week. Thus far throughout the week, Southern live trade has traded at mostly $135 to $136, which is steady to $1 higher than last week's weighted averages. Northern dressed deals have been marked at mostly $225 to $227, which is steady to $2 higher than last week's weighted average basis Nebraska. It wouldn't be unlikely to see a little more clean-up trade develop ahead of the week's end, but largely the business is done with. The week's slaughter is anticipated to be another big one, which helps offset the slight pressure from lower boxes. August feeders are up $0.35 at $138.05, October feeders are up $0.57 at $144.22 and December feeders are up $0.40 at $150.30.
Boxed beef prices are lower: choice down $1.18 ($265.10) and select down $1.08 ($239.27) with a movement of 65 loads (40.45 loads of choice, 11.98 loads of select, zero loads of trim and 12.58 loads of ground beef).
FEEDER CATTLE:
Even as the corn market pushed a $0.06 to $0.09 rally heading into the afternoon's trade, the feeder cattle contracts don't seem to care as the nearby contracts are pushing gains well over $1.00 higher. This past week was incredibly important for the feeder cattle market. With cash cattle prices able to trade $0.50 to $2.00 higher, it proves the fact that packers are clipping though cattle and running through these supplies faster than originally thought. Given that feeder cattle placements have been so high due to drought managing practices, feeder cattle buyers needed to see that there was going to be better demand for fats, which they began to see this week. As the market inches closer to the fall run, feeder cattle demand should only get better and has the potential to get extremely strong if the fat cattle market grows stronger. August feeders are up $1.02 at $180.22, September feeders are up $1.52 at $184.10 and October feeders are up $1.05 at $186.52.
LEAN HOGS:
The largest currently traded October lean hog contract has broken above the market's short-term resistance at $97.50 and is trading higher into Friday's afternoon. It's a toss-up at this point how the futures market will close, as support is scarce throughout the complex, but both the October and December 2022 contracts are charging ahead despite cautions elsewhere. The biggest things to watch for Friday afternoon will be how the day's estimated slaughter and pork cutout values. Pork cutout values have ping-ponged around this week and the market would like to see more stable and consistent support. October lean hogs are up $0.90 at $98.50, December lean hogs are up $0.15 at $88.77 and February lean hogs are down $0.10 at $91.35.
The projected lean hog index for Aug. 4 is up $0.48 at $122.09, and the actual index for Aug. 3 is up $0.67 at $121.61. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.37 with a weighted average of $123.67, ranging from $115.00 to $135.00 on 5,499 head and a five-day rolling average of $125.75. Pork cutouts total 153.14 loads with 134.90 loads of pork cuts and 18.24 loads of trim. Pork cutout values: down $0.31, $124.49.
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