GENERAL COMMENTS:
The livestock complex is trading mixed as the cattle complex has caught another gust of support while the lean hog market's nearby contracts trade lower. The cash cattle market currently has bids being offered in all regions, but feedlots aren't seeming too worried about selling anymore cattle unless packers up their bids. July corn is up 6 1/4 cents per bushel and July soybean meal is up $17.00. The Dow Jones Industrial Average is up 46.82 points.
LIVE CATTLE:
It may be the Friday ahead of a long holiday weekend, but the live cattle complex is slacking on its duties before the weekend arrives, as the futures complex trades fully higher and the cash cattle market is still seeing interest from packers. Yes, of the small handful of cattle that have traded this week, cash cattle prices have been lower, but over the last two weeks, cash prices have jumped nearly $20.00 and last week packers bought just shy of 110,000 head, so we knew that some pushback from packers was likely going to be seen in this week's market. There are bids currently being offered throughout the feeding region, but feedlots continue to let the sit idle as they're passing on the offers. Asking prices are around $186 in the South and $298 to $300 in the North. Nebraska Cattlemen are reporting that some of the dressed cattle bought this week are set to ship as early as Saturday, which continues to emphasize the point that packers are short bought and still somewhat in need of cattle even though they've been extremely aggressive in the cash market over the last two weeks. August live cattle are up $0.50 at $171.57, October live cattle are up $0.92 at $175.27 and December live cattle are up $1.17 at $179.15.
A light trade was reported in the North Thursday with dressed deals marked at mostly $296, $4 lower than last week's weighted average. Live deals in that area were at mostly $185 to $186, $4 to $5 lower than last week's weighted averages. The South remained very quiet, with only a few bids of $178 noted and passed.
Boxed beef prices are mixed: choice down $0.08 ($341.99) and select up $0.36 ($309.94) with a movement of 56 loads (36.96 loads of choice, 4.89 loads of select, 6.04 loads of trim and 8.58 loads of ground beef).
FEEDER CATTLE:
Even though the nearby corn contracts are trading anywhere from $0.06 to $0.13 higher, the feeder cattle complex is back to trading higher after enduring a couple of downward days earlier this week. The corn market's pressure is something that the feeder cattle complex cannot deny, but traders, at this point, are also willing to look at the supportive nature of the live cattle market and rely on its support to keep the market trading higher. August feeders are up $1.32 at $235.45, September feeders are up $1.15 at $238.67 and October feeders are up $1.02 at $240.82.
LEAN HOGS:
The lean hog complex is trading mixed as the market's nearby contracts trade mostly lower while the deferred contracts mildly modestly. Pork cutout values are higher at noon Friday, but the cash market is lending absolutely no support as packers are showing that they've already fulfilled their cash needs this week. With the spot August contract now trading at the highest threshold since early May, traders are going to rely heavily on continued support from the cutout sector if the market is to continue to trade higher. July lean hogs are up $1.27 at $93.20, August lean hogs are down $0.27 at $90.02 and October lean hogs are down $0.30 at $79.92.
The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $8.14 with a weighted average price of $85.41, ranging from $75.00 to $96.00 on 711 head and a five-day rolling average of $93.37. Pork cutouts total 130.95 loads with 112.66 loads of pork cuts and 18.29 loads of trim. Pork cutout values: up $1.16, $92.05.
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