GENERAL COMMENTS:
The livestock complex is trading mostly lower as higher corn prices have the cattle contracts at bay and as a lack of support and direction keeps the lean hog contracts trending lower. A single bid of $291 is currently being offered in Nebraska but no cash cattle trade has developed yet. December corn is up 16 1/2 cents per bushel and December soybean meal is down $1.90. The Dow Jones Industrial Average is up 165.15 points.
LIVE CATTLE:
With corn prices continuing to rally on top on Tuesday's big gains, the live cattle complex is pulling back as traders patiently wait for the cash cattle market to hopefully show them continued support. August live cattle are down $0.65 at $180.62, October live cattle are down $0.35 at $183.20 and December live cattle are down $0.42 at $186.657. Currently there's a single dressed bid of $291 being offered in Nebraska by an eastern regional packer, but with asking prices in the North being firm at $295, no one is jumping on that offer. Asking prices in the South are noted at $183 plus. Packer inquiry should continue to improve throughout the day, but feedlots aren't seeming too worried about getting cattle marketed knowing that packers bought less than 70,000 head in last week's cash market.
Boxed beef prices are mixed: choice down $0.74 ($303.94) and select up $0.55 ($277.16) with a movement of 76 loads (42.48 loads of choice, 14.69 loads of select, 9.07 loads of trim and 9.85 loads of ground beef).
FEEDER CATTLE:
With corn prices running another $0.12 to $0.14 higher, the feeder cattle complex is again trading lower. The market could find support late in the week if cash cattle prices remain at least steady, but at this point its looking like packers and feedlots are going to go rounds again this week and trade could get dragged out. August feeders are down $2.17 at $245.80, September feeders are down $1.75 at $248.25 and October feeders are down $1.42 at $249.65.
LEAN HOGS:
The lean hog complex is continuing to trade lower as its market lacks enough technical and fundamental support to justify trading higher at this point. Traders look at pork cutout values and see minor interest, but with packers being fickle in the cash market, strong fundamental support isn't surfacing. And, not to be forgotten, pork producers are operating through what may potentially be the toughest financial year ever endured in the hog sector, and now with corn prices showing some improvement, producers may elect to cull down on their herds even more. August lean hogs are up $0.50 at $96.77, October lean hogs are down $0.60 at $80.87 and December lean hogs are down $1.10 at $74.10.
The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.11 with a weighted average price of $103.25, ranging from $95.00 to $105.00 on 4,516 head and a five-day rolling average of $102.42. Pork cutouts total 152.62 loads with 142.62 loads of pork cuts and 10.00 loads of trim. Pork cutout values: up $0.43, $113.11.
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