GENERAL COMMENTS:
The lean hog complex isn't rallying alongside the cattle contracts as traders continue to take a cautious approach to the market ahead of Thursday's Quarterly Hogs and Pigs report. The cash cattle market hasn't seen any more trade develop, but bids are currently being offered in both the North and the South. December corn is down 12 1/2 cents per bushel and December soybean meal is down $5.00. The Dow Jones Industrial Average is down 29.36 points.
LIVE CATTLE:
The live cattle complex is trading mostly higher as the nearby contracts see the corn market's weakness as a positive sign, plus the fact that feedlots seem to be holding out for steady to higher cash prices is also encouraging. A few bids are currently being offered but at this point feedlots have yet to jump on the offers. Bids of $179 to $181 are currently being offered in Nebraska and a bid of $179 is currently being offered in Texas. It's tough telling how this week's cash cattle market will pan out as feedlots' showlists are lighter, and they could elect to let this week's market pass by without moving many cattle and then reoffer their pens next week after the holiday is over and when packers are likely to be more aggressive in the market. However, trade could just as easily develop at steady to slightly lower prices as packers want to keep their inventory somewhat padded to avoid having to overly support in one of the upcoming weeks. August live cattle are up $0.75 at $173.27, October live cattle are up $0.37 at $176.45 and December live cattle are up $0.10 at $180.27.
Boxed beef prices are lower: choice down $1.08 ($328.15) and select down $0.44 ($297.99) with a movement of 60 loads (32.56 loads of choice, 9.59 loads of select, 9.74 loads of trim and 8.22 loads of ground beef).
FEEDER CATTLE:
With the nearby corn contracts trailing yet another $0.10 lower Wednesday morning, the feeder cattle contracts are again taking the opportunity to trade higher. August feeders are up $0.50 at $239.00, September feeders are up $0.52 at $242.50 and October feeders are up $0.50 at $244.82. Demand remains extremely strong throughout the countryside for feeders, and with the initial purchase price of the animals significantly higher than years past, buyers are seeing the corn market's weakness as some relief as they're able to figure better breakeven projections with cheaper feed.
LEAN HOGS:
It's not surprising to see that the day before the Quarterly Hogs and Pigs report comes out that the lean hog market is still trading gingerly as traders eagerly look forward to seeing Thursday's USDA report unveiled. Cash prices are higher but the day's volume of hogs traded is still relatively thin, and pork cutout values are lower. Packers could be less aggressive in this week's market as they're looking at multiple days ahead of them with a reduced kill schedule as the 4th of July quickly approaches. July lean hogs are up $0.25 at $94.37, August lean hogs are up $0.22 at $91.27 and October lean hogs are down $0.10 at $79.67.
The projected lean hog index for June 27 is up $0.44 at $92.96, and the actual index for June 26 is up $0.41 at $92.52. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.04 with a weighted average price of $93.50, ranging from $83.00 to $96.00 on 2,228 head and a five-day rolling average of $93.67. Pork cutouts total 129.95 loads with 118.09 loads of pork cuts and 11.86 loads of trim. Pork cutout values: down $2.97, $97.19.
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