GENERAL COMMENTS:
The cash cattle market has yet to trade any cattle as the battle between packers and feedlots continues. Bids are being offered in both regions, but feedlots aren't interested at this point in trading cattle for cheaper money. December corn is down 7 3/4 cents per bushel and December soybean meal is down $9.00. The Dow Jones Industrial Average is up 238.60 points.
LIVE CATTLE:
The live cattle complex has waited and waited -- and who really knows how much longer the market will have to keep biting its nails as the cash cattle market still hasn't seen any trade develop. Even though waiting until Friday afternoon to trade cattle can cause traders some anxiety, it's a beautiful role reversal to see in the cash cattle market compared to recent years. There are few bids currently being offered, but feedlots are remaining hellbent on holding out for more, and packers are being just as tough as they, at this point, are refusing to pay more for cattle this week. Bids of $176 to $178 are currently being offered in Texas, and bids of $292 dressed are being offered in Nebraska. Asking prices remain firm in the South at $180 to $182. August live cattle are up $0.35 at $178.40, October live cattle are up $0.17 at $179.67 and December live cattle are up $0.40 at $183.80.
Boxed beef prices are lower: choice down $0.24 ($302.62) and select down $3.09 ($276.67) with a movement of 69 loads (52.03 loads of choice, 10.06 loads of select, zero loads of trim and 7.11 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is again trading higher as the market's seen tremendous support from its fundamentals this past week and can't help but continue to trade higher as corn prices are again drifting lower into the day's noon hour. Feeder cattle sales have been strong this past week with the only consistent group of cattle selling lower being calves that are either short weaned or not weaned at all, especially in the South where temperatures are high and the stress that those calves will endure is great. August feeders are up $0.90 at $245.55, September feeders are up $0.87 at $249.15 and October feeders are up $0.85 at $251.20.
LEAN HOGS:
The lean hog complex is trading higher and feeling empowered as the market nears Friday's noon hour. With the October contract nearing the resistance at $85.00, it will be interesting to see what traders do Friday afternoon regarding that threshold. Do they believe that they have enough support to close about that price point, or will their boldness fade as the day's closing bell nears? Time will tell, but with both cash prices and pork cutout values lower, I don't think that it's overly likely that traders will close above $85.00 in the October contract. August lean hogs are up $1.00 at $103.02, October lean hogs are up $1.72 at $84.97 and December lean hogs are up $1.10 at $76.90.
The projected lean hog index for July 27 is down $0.03 at $105.81, and the actual index for July 26 is up $0.05 at $105.84. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.05 with a weighted average price of $99.47, ranging from $95.00 to $104.00 on 1,005 head and a five-day rolling average of $104.80. Pork cutouts total 192.44 loads with 175.61 loads of pork cuts and 16.83 loads of trim. Pork cutout values: down $0.23, $114.50.
No comments:
Post a Comment