GENERAL COMMENTS:
The cattle complex is trading higher as cattlemen love the onset of cheaper corn prices, especially in the feeder cattle market world. The lean hog market is trading mixed with the market's nearby contracts trading mildly higher but the deferred contracts are trading lower as traders want to see what Thursday's Quarterly Hogs and Pigs report holds before they support the market much more. December corn is down 30 1/2 cents per bushel and December soybean meal is down $8.70. The Dow Jones Industrial Average is up 154.50 points.
LIVE CATTLE:
The live cattle complex is trading higher as sharply lower corn prices alleviate some pressure. The cash cattle market hasn't seen any ounce of interest yet this week and it's looking like significant business could be delayed until the second half of the week. Showlists are lighter this week which bodes well for feedlots as they try to hold the market as close to steady as possible. August live cattle are up $1.42 at $172.02, October live cattle are up $1.52 at $175.55 and December live cattle are up $1.45 at $179.82. Boxed beef prices are seeing some seasonal pressure develop as retailers have already bought and stocked their coolers for the Fourth of July run and now prices are regressing. Packers will try to use this as a reason why cash prices should also fall, but feedlots aren't going to be easily pushed into selling cattle cheaper as they know that now is the time to push on the market when supplies are thin and leverage favors their position.
Boxed beef prices are mixed: choice down $1.08 ($331.96) and select up $0.29 ($299.96) with a movement of 74 loads (40.20 loads of choice, 23.22 loads of select, zero loads of trim and 10.29 loads of ground beef).
FEEDER CATTLE:
Grab onto your seats because keeping up with the dynamic back-and-forth nature of the corn/feeder cattle relationship is no easy task. With nearby corn prices tanking $0.10 to $0.28 lower, the feeder cattle complex is seeming to effortlessly rally $3.00 to $4.00 higher. August feeders are up $4.45 at $238.15, September feeders are up $4.15 at $241.62 and October feeders are up $3.87 at $243.97. The market's strength is undoubtedly stemming from the sharp decline in corn prices, but just know that, with the grain sector extremely volatile right now to weather changes, the feeder cattle market could be pressured later this week if corn prices happen to shoot higher. Until the corn crop grows more mature, it's a complex and volatile market to say the least.
LEAN HOGS:
The lean hog complex is trading mixed as its immediate contracts are trading slightly higher but its deferred contracts are trading lower. July lean hogs are up $0.40 at $93.80, August lean hogs are up $0.67 at $90.72 and October lean hogs are down $0.62 at $79.60. Some of the market's mixed, indecisive nature is likely stemming from the fact that traders are anxious about Thursday's Quarterly Hogs and Pigs report. With feed prices high and feeder pig prices lower, a reduction could be seen in breeding herd inventory, but only Thursday's report will know those full details.
The projected lean hog index for June 26 is up $0.41 at $92.52 and the actual index for June 23 is up $0.71 at $92.11. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.40 with a weighted average price of $92.46, ranging from $83.00 to $94.00 on 442 head and a five-day rolling average of $95.18. Pork cutouts total 177.15 loads with 160.84 loads of pork cuts and 16.31 loads of trim. Pork cutout values: up $0.75, $100.30.
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