GENERAL COMMENTS:
The livestock complex is seeing mixed interest as both the lean hog and feeder cattle markets trade higher, but the live cattle complex is leery of doing much of anything ahead of Friday afternoon's Cattle on Feed report. No new cash cattle trade has reported, and at this point it's unlikely that anything develops ahead of the COF report. Some light trade could develop afterwards. July corn is down 13 3/4 cents per bushel and July soybean meal is down $5.90. The Dow Jones Industrial Average is down 24.19 points.
LIVE CATTLE:
As the live cattle market patiently waits for Friday afternoon's Cattle on Feed report, the market is sitting back, seeming to hold its breath even though the report is expected to share neutral to bullish findings. April live cattle are down $1.17 at $172.92, June live cattle are down $0.40 at $163.95 and August live cattle are down $0.35 at $163.07. No new cash cattle trade has developed and it's seeming as if any more trade could be delayed until after the COF report is shared. Asking prices for cattle left on showlists are around $176 plus in the South and $290 in the North. Given that the markets close before the COF report is shared, Friday's report won't likely help Friday's futures gain any support ahead of closing, but if the report is indeed friendly in its nature, then some higher cash cattle sales could develop after the report if packers are still needing cattle.
Boxed beef prices are mixed: choice down $0.22 ($306.77) and select up $0.42 ($289.16) with a movement of 78 loads (66.33 loads of choice, 6.19 loads of select, zero loads of trim and 5.12 loads of ground beef).
FEEDER CATTLE:
The nearby feeder cattle contracts are trading slightly lower as traders note the weaker tone throughout the live cattle complex, but the deferred feeder cattle contracts can't help but to rally when corn prices are drifting anywhere from $0.06 to $0.13 lower. May feeders are down $0.50 at $211.85, August feeders are up $0.45 at $229.97 and September feeders are up $0.42 at $232.45. Traders are expecting placements to be lighter again on Friday afternoon's Cattle on Feed report, which should encourage feeder cattle traders as supplies will unavoidably be thinner in the months ahead.
LEAN HOGS:
After testing new lows Thursday afternoon, the lean hog complex is back to trading mildly higher as traders offer the complex somewhat of a bounce back day. It is encouraging that midday pork cutout values are up over $2.00, but that's largely being driven by a $5.92 gain in the ham and a $5.07 gain in the belly. At this point, lean hog traders would love nothing more than for the complex to find a bottom and trade steady until demand picks up and supplies tighten.
The projected lean hog index is unavailable at this time. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However, we can see that 2,585 head have traded and that the market's five-day rolling average now sits at $67.19. Pork cutouts total 160.54 loads with 143.13 loads of pork cuts and 17.41 loads of trim. Pork cutout values: up $2.65, $80.80.
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