GENERAL COMMENTS:
The livestock complex is largely struggling through Monday morning's trade as traders rock back in shock of sharply higher corn prices and as they try to continue to make sense of last Friday's Cattle on Feed report. It wouldn't be surprising to see the nearby contracts in the three livestock markets close with this pressured tone as traders are struggling to find any support. December corn is up 25 1/4 cents per bushel and December soybean meal is up $0.30. The Dow Jones Industrial Average is up 205.29 points.
LIVE CATTLE:
The nearby live cattle contracts are trading lower as traders are still trying to make sense of last Friday's Cattle on Feed report, but the deferred contracts are having no issue trading higher. August live cattle are down $0.25 at $179.77 and October live cattle are down $0.42 at $181.47 and December live cattle are steady at $185.17. The nearby contracts could be pressured throughout the day until more substantial support develops from the cash market, or potentially from stronger box prices. New Showlists appear to be lower in all major feeding states.
Last week's cash cattle trade waited to again develop until Thursday and Friday. Southern live cattle trade traded from $180 to $187, but mostly at $180, which is $2.00 higher than the prior week's weighted average. Northern dressed cattle traded for $290 to $300 but mostly at $295, which is $3.00 higher than the prior week's weighted average.
Boxed beef prices are higher: choice up $0.82 ($303.56) and select up $1.61 ($278.34) with a movement of 48 loads (17.28 loads of choice, 19.33 loads of select, zero loads of trim and 11.84 loads of ground beef).
FEEDER CATTLE:
With corn prices rallying a whopping $0.24 to $0.26, the feeder cattle complex is trading lower as it manages both higher corn prices and the pressure of last week's higher placements on the Cattle on Feed report. August feeders are down $1.42 at $244.50, September feeders are down $1.07 at $248.20 and October feeders are down $0.77 at $250.22. Today Northern Livestock Video Auction kicks off their four day, Summertime Classic video auction where 160,000 head of cattle will sell and right at 18,500 sheep. It will be interesting to see if prices stay in line with the trend already established this summer or if the shortage of feeder cattle will encourage buyers to bid feeders even higher.
LEAN HOGS:
Last Friday the lean hog complex bowed down to the resistance at $85.00, and, again Monday, the spot October contract isn't blowing past that resistance threshold as it continues to trade lower. Not only do traders want to see more followed through support in terms of strong pork demand, but these higher corn prices are burdensome as well. August lean hogs are up $0.15 at $100.82, October lean hogs are down $0.97 at $83.30 and December lean hogs are down $0.72 76.10.
The projected lean hog index for July 21 is up $0.56 at $104.60 and the actual index for July 20 is up $0.44 at $104.04. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.85 with a weighted average price of $98.47, ranging from $96.00 to $103.00 on 429 head and a five-day rolling average of $102.85. Pork cutouts total 130.40 loads with 117.78 loads of pork cuts and 12.62 loads of trim. Pork cutout values: up $3.31, $118.56.
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