Tuesday Midday Livestock Market Update - Traders Remain Cautious Players in Cattle Complex

GENERAL COMMENTS:

The livestock complex is trading mixed as traders acknowledge the downturn in corn prices but are remaining hesitant in the cattle contracts. Meanwhile, the lean hog market is back to trading higher as traders deem the slight up tick in pork cutout values as enough support to merit higher trader in their market. December corn is down 6 3/4 cents per bushel and December soybean meal is up $1.90. The Dow Jones Industrial Average is up 55.14 points.

LIVE CATTLE:

It's another dreary day for the live cattle complex as the contracts continue to fall lower. Tuesday's weaker market can't be blamed on corn prices, as they're trading lower, but the aftermath of last week's Cattle on Feed report still has some traders skeptical, especially when they know this week's cash market could be up against some pressure with packers purchasing a sizeable volume last week. The market is seeing better support from boxed beef prices as both choice and select cuts are up Tuesday morning, and consumers are remaining active at the meat counter. August live cattle are down $0.30 at $178.47, October live cattle are down $0.45 at $179.85 and December live cattle are down $0.75 at $183.57. The cash cattle market hasn't seen a lick of interest develop and trade will likely be delayed until late in the week again.

Boxed beef prices are higher: choice up $1.78 ($305.94) and select up $1.61 ($278.60) with a movement of 85 loads (49.36 loads of choice, 15.71 loads of select, 9.24 loads of trim and 10.52 loads of ground beef).

FEEDER CATTLE:

The feeder cattle contracts are toying with the idea of trading higher as it seems like a grand opportunity to do so given that corn prices are trading lower, but then again traders are wondering if that's really a wise choice when the live cattle contracts aren't pushing higher. Nevertheless, the nearby feeder cattle contracts are trading slightly lower while the deferred contracts are rallying modestly. With the CME Feeder Cattle Index able to close at $241.93 Monday afternoon, it's wildly apparent that demand for feeders isn't an issue in the countryside. Traders just need reassured that they can put Friday's Cattle on Feed report behind them and once again trade the market's strong fundamentals. August feeders are up $0.02 at $243.27, September feeders are down $0.10 at $246.52 and October feeders are down $0.12 at $248.55.

LEAN HOGS:

The lean hog complex isn't wasting any time in Tuesday's market as traders see the slight uptick pork cutout prices as a positive sign along with the slight descent in corn prices. Still, the cash hog market hasn't seen much interest as packers are holding off to really buy in this week's market. August lean hogs are up $1.22 at $101.32, October lean hogs are up $1.40 at $84.05 and December lean hogs are up $0.97 at $76.67.

The projected lean hog index for July 24 is up $0.66 at $105.26, and the actual index for July 21 is up $0.56 at $104.60. Hog prices are higher on the Daily Direct Morning Hog Report, up $3.71 with a weighted average price of $102.18, ranging from $96.00 to $105.00 on 680 head and a five-day rolling average of $102.35. Pork cutouts total 188.90 loads with 171.23 loads of pork cuts and 17.66 loads of trim. Pork cutout values: up $0.37, $117.58.