GENERAL COMMENTS:
The livestock complex is a mixed bag as the noon hour approaches as the lean hog market is rallying aggressively but the cattle complex isn't finding the same type of interest. No cash cattle trade has been reported at this time and trade could be delayed until Thursday. December corn is up 3 1/4 cents per bushel and December soybean meal is down $3.50. The Dow Jones Industrial Average is down 123.28 points.
LIVE CATTLE:
Packers are trying to "play it cool" as they remain quiet and distant from the cash cattle market as not a single bid has surfaced yet. Thankfully, feedlots aren't in a desperate position as their showlists are green. It will be interesting to see who comes out with the upper hand in this week's market: will it be packers or feedlots? Packers will gain the market's upper hand if they're able to buy a plethora of cattle at significantly lower prices, and feedlots will gain the upper hand if they keep cash cattle prices at least steady and sell as few of cattle as possible to the deferred delivery option. But, at this point, both parties are remaining firm in their stance as no cattle have traded. August live cattle are down $0.85 at $175.97, October live cattle are down $0.52 at $178.80 and December live cattle are down $0.32 at $183.10.
Boxed beef prices are mixed: choice up $2.08 ($330.42) and select down $0.44 ($293.86) with a movement of 48 loads (18.21 loads of choice, 14.27 loads of select, 5.60 loads of trim and 9.49 loads of ground beef).
FEEDER CATTLE:
With the nearby corn contracts trading $0.01 to $0.06 lower, the feeder cattle complex would like to trade higher but without the support of the live cattle market, it's trading meekly. Feeders continue to see tremendous support throughout the countryside, but technically speaking the market is longing to continue to trade higher but isn't finding the support necessary at the current time to do so. If cash cattle trade begins to develop at steady to higher prices, then the market may find the support it's currently after. August feeders are down $0.07 at $247.82, September feeders are down $0.30 at $251.07 and October feeders are down $0.47 at $252.67.
LEAN HOGS:
The lean hog complex continues to skyrocket through the day's trade as the nearby contracts push a snappy $1.00 to $2.82 gain into the day's noon hour. Both cash prices and pork cutout values are higher at noon which obviously lends traders some additional support, but more than that the market's technical stamina remains incredible. July lean hogs are up $2.57 at $100.40, August lean hogs are up $2.85 at $97.15 and October lean hogs are up $1.60 at $81.20.
The projected lean hog index for July 3 is up $0.37 at $94.68, and the actual index for June 30 is up $0.39 at $94.31. Hog prices are higher on the Daily Direct Morning Hog Report, up $4.29 with a weighted average price of $98.49, ranging from $94.00 to $100.00 on 4,290 head with a five-day rolling average of $95.34. Pork cutouts total 127.82 loads with 119.50 loads of pork cuts and 8.32 loads of trim. Pork cutout values: up $2.85, $110.85.
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