GENERAL COMMENTS:
The livestock complex is seeing moderate support thus far from traders this week as the cattle contracts trade mixed, but the lean hog market is trading fully higher. With the market scheduled to see the latest Cattle on Feed report this upcoming Friday, traders could be a tick more cautious in how they trade both the live cattle and feeder cattle contracts ahead of seeing what that report yields. December corn is down 6 3/4 cents per bushel and December soybean meal is down $3.80. The Dow Jones Industrial Average is up 330.36 points.
LIVE CATTLE:
The live cattle complex was trading fully higher earlier this morning, but as the market nears Monday's noon hour, a few of the nearby contracts are trading slightly lower. It's likely that the market will chop sideways this week as traders could be cautious ahead of seeing what Friday's Cattle on Feed report produces. With cash cattle prices trading $2.00 to $4.00 lower last week, feedlots will likely be pressured again this week to sell their showlists for less money. August live cattle are steady at $182.37, October live cattle are down $0.07 at $184.00 and December live cattle are up $0.20 at $185.67.
Last week, Southern live cattle traded at mostly $188 which is $4.00 lower than the previous week's weighted average while Northern dressed cattle traded at $312 which is $2.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 82,802 head. Of that, 75% (61,798 head) were committed to the nearby delivery, while the remaining 25% (21,004 head) were committed to the deferred delivery.
Boxed beef prices are mixed: choice down $0.65 ($312.41) and select up $1.01 ($303.32) with a movement of 42 loads (28.26 loads of choice, 5.67 loads of select, 4.52 loads of trim and 3.36 loads of ground beef).
FEEDER CATTLE:
With corn prices trading lower and the live cattle complex lending enough support in its own higher trend, the feeder cattle contracts are again trading higher. The spot August contract is trading in line with both the market's 40- and 100-day moving averages, which is a positive finding given that last week the market ascended below though moving averages. Traders could be somewhat reserved again this week as the latest Cattle on Feed report will be shared on Friday, which typically generates some market hesitancy. August feeders are up $0.45 at $259.10, September feeders are up $0.95 at $259.05, and October feeders are up $1.02 at $258.57. Showlists are mixed this week with the Texas and Kansas having greater showlists, but Nebraska and Colorado have fewer cattle to market.
LEAN HOGS:
At the week's start, the lean hog complex has collected fairly strong interest for its market although some of the nearby contracts are trading mildly lower. Again, this week, so much of trader's sediment toward the market is going to depend on how pork cutout values fair, and if domestic demand seems somewhat supportive. August lean hogs are up $0.07 at $88.52, October lean hogs are down $0.27 at $69.90, and December lean hogs are down $0.05 at $62.32.
The projected lean hog index for 7/12/2024 is up $0.04 at $88.42 and the actual index for 7/11/2024 is down $0.27 at $88.38. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.14 with a weighted average price of $82.59, ranging from $79.00 to $85.00 on 1,560 head and a five-day rolling average $86.87. Pork cutouts total 157.58 loads with 135.00 loads of pork cuts and 22.58 loads of trim. Pork cutout values: down $0.19, $98.65.
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