Friday Midday Livestock Market Update - Cattle Trade Cautiously Ahead of Cattle on Feed Report

GENERAL COMMENTS:

The livestock complex is trading mixed into Friday afternoon as the cattle contracts remain cautious ahead of the afternoon's Cattle on Feed report, but the lean hog market continues to trend higher. Cash cattle hasn't seen any more trade develop and it's looking like the bulk of the week's trade is done with. December corn is up 3/4 cent per bushel and December soybean meal is down $1.80. The Dow Jones Industrial Average is down 305.14 points.

LIVE CATTLE:

It's somewhat surprising that the live cattle complex is mixed given that later this afternoon the monthly Cattle on Feed report will be released, and total on-feed numbers could be greater than a year ago -- which always sends traders into panic mode. But even so, the nearby contracts are trading mildly higher, seeming to desire to recover some of the lost position from Thursday. August live cattle are up $0.57 at $182.82, October live cattle are up $0.55 at $183.57 and December live cattle are up $0.10 at $185.07. No new cash cattle sales have been reported, but bids of $310 (which is steady with the week's earlier trade) have been renewed in Nebraska. At this point it's looking like the bulk of the week's trade is done with, but some more clean-up trade could develop.

Boxed beef prices are lower: choice down $2.02 ($314.13) and select down $0.45 ($299.01) with a movement of 105 loads (83.95 loads of choice, 14.91 loads of select, zero loads of trim and 5.75 loads of ground beef).

FEEDER CATTLE:

In preparation for this afternoon's Cattle on Feed report, it isn't surprising to see the feeder cattle complex merely holding its breath and trading lower. Demand for feeder cattle remains incredibly strong in the countryside, continued to be evidenced by the CME Feeder Cattle Index, but at this point in time, traders don't seem to care much about what feeder cattle sales are doing in the countryside. They seem more worried about technical fears and about this afternoon's Cattle on Feed report. August feeders are down $0.17 at $256.02, September feeders are down $0.80 at $256.20 and October feeders are down $0.82 at $256.12.

LEAN HOGS:

The lean hog complex is continuing to trade higher as traders are committed to advancing the market and pull the complex out of the hole it dug earlier this spring. Thankfully the continued support this week of better pork demand has encouraged traders and is keeping them active in the futures complex. At this point it's looking like the market will be able to close with a higher end, which is a refreshing change for the hog sector. August lean hogs are up $0.67 at $92.02, October lean hogs are up $0.80 at $74.82 and December lean hog are up $1.40 at $67.10.

The projected CME Lean Hog Index for 7/18/2024 is up $0.44 at $89.71, and the actual index for 7/17/2024 is up $0.47 at $89.27. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.47 with a weighted average price of $82.23, ranging from $74.00 to $85.00 on 904 head and a five-day rolling average of $84.02. Pork cutouts total 210.50 loads with 190.56 loads of pork cuts and 19.94 loads of trim. Pork cutout values: up $2.49, $102.74.