GENERAL COMMENTS:
The livestock complex closed mixed with the cattle contracts able to close mostly higher by Monday's end, but the lean hog complex faced some pressure. This week could be subject to some cattle pressure as Friday will release two big USDA reports -- the Cattle on Feed and the Cattle Inventory reports. Hog prices closed $2.09 higher on the Daily Direct Afternoon Hog Report, with a weighted average price of $102.00 on 2,162 head. December corn is down 7 3/4 cents per bushel and December soybean meal is up $8.40. The Dow Jones Industrial Average is up 126.81 points.
LIVE CATTLE:
The live cattle contracts closed mostly higher, although the nearby contracts did face some mild pressure through closing. August live cattle closed $0.05 lower at $180.12, October live cattle closed $0.37 lower at $182.25 and December live cattle closed $0.07 higher at $185.85. Traders continue to believe in the cattle market's strong fundamental position, but after running the nearby contracts to new contract highs last Friday, traders were leery of overly supporting the market Monday. Not to mention, later this week there will be the Cattle on Feed and Cattle Inventory reports, released on Friday, which cause a little emotional-based trading to occur. New showlists appear to be mixed, somewhat higher in Nebraska/Colorado, somewhat lower in Kansas, and lower in Texas. Monday's slaughter is estimated at 126,000 head, 4,000 head more than a week ago and 2,000 head more than year ago.
Last week's business started to develop on Wednesday with small amounts of cattle selling through Thursday and Friday. In the Southern Plains, cattle sold for $175 to $180, which is $3.00 lower to $2.00 higher than the previous week's weighted average. Northern dressed cattle sold for $287 to $295, but mostly at $291, which is $1.00 higher than last week's weighted average. Last week's negotiated cash cattle traded totaled 64,487 head. Of that, 68% (43,556 head) were committed for the nearby delivery, while the remaining 32% (20,931 head) were committed for the deferred delivery.
Boxed beef prices closed mixed: choice up $0.84 ($306.78) and select down $0.87 ($275.74) with a movement of 105 loads (44.60 loads of choice, 25.58 loads of select, 22.64 loads of trim and 11.89 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat higher. Feedlots didn't go to war with packers last week to turn their showlists over to them easily this week.
FEEDER CATTLE:
It was an easy-breezy day for the feeder cattle complex as feeders saw the fundamental support of the cash cattle market as sheer power and -- when combined with Monday's lower corn close -- feeders couldn't help but trade higher. The spot August contract rang in a new contract high, which isn't all that surprising given the tremendous demand that both feeders and calves have been seeing in recent sales. August feeders closed $2.60 higher at $249.25, September feeders closed $2.20 higher at $251.42 and October feeders closed $1.87 higher at $252.35. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week and at their midsession point, feeder steers were traded steady to $2.00 higher and feeder heifers were trading steady. Steers calves were trading steady and heifer calves were selling steady to $3.00 stronger. Feeder cattle supply over 600 pounds was 62%. The CME Feeder Cattle Index for July 14: down $1.63, $237.73.
LEAN HOGS:
The lean hog complex didn't see the support it needed or wanted in Monday's trade, which ultimately landed the market to a lower end. August lean hogs closed $1.42 lower at $94.77, October lean hogs closed $1.27 lower at $82.32 and December lean hogs closed $0.40 lower at $75.95. Not helping matters is also the fact that very few hogs traded in the cash market and that pork cutout values closed lower. The carcasses lower close was largely because of the $8.45 drop in the ham, and the $7.32 drop in the butt. Pork cutouts totaled 284.97 loads with 259.44 loads of pork cuts and 25.53 loads of trim. Pork cutout values: down $2.79, $112.76. Monday's slaughter is estimated at 449,000 head, 11,000 head less than a week ago and 1,000 head less than a year ago. Friday's hog slaughter was revised to 455,000 head, and Saturday's hog slaughter was revised to 26,000 head. The CME Lean Hog Index for July 13: up $0.74, $101.03.
TUESDAY'S HOG CALL: Lower. Given that pork cutout values closed lower and that the futures complex was hesitant, packers could be slow to show much interest in this week's cash market.
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