GENERAL COMMENTS:
Both the live cattle and feeder cattle contracts are higher again Tuesday as traders note the continued support of strong boxed beef prices. Even though this week's typical trading schedule will be cut short because of the 4th of July, strong market fundamentals persist. No bids or asking prices have been established at this point and it's most likely the week's trade will be delayed until Friday. December corn is up 3/4 cent per bushel and December soybean meal is down $3.70. The Dow Jones Industrial Average is down 50.98 points.
LIVE CATTLE:
After closing lower Monday afternoon, the live cattle market is posting a modest rally thus far through Tuesday's trade as traders appreciate the continued support of strong boxed beef prices. August live cattle are up $0.70 at $185.02, October live cattle are up $0.87 at $185.02 and December live cattle are up $1.52 at $187.07. It's too early in the week for any cash cattle trade to have developed, and bids and asking prices still remain unestablished at this point. It wouldn't be surprising to see this week's cash cattle sales thin as processing speeds will be reduced because of Thursday's holiday.
Boxed beef prices are higher: choice up $1.79 ($330.97) and select up $1.03 ($307.44) with a movement of 49 loads (28.27 loads of choice, 8.46 loads of select, zero loads of trim and 11.86 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is posting a noticeably stronger day as the market found technical support at its 40-day moving average, and continues to be encouraged by the cattle market's strong fundamentals which are thriving on tight supplies amid exceptional consumer demand. August feeders are up $3.20 at $260.57, September feeders are up $2.87 at $260.82 and October feeders are up $2.77 at $260.95. Feeder cattle sales will be extremely thin this week as most sale barns are closed for the 4th of July holiday.
LEAN HOGS:
With not much action developing in the lean hog sector, traders are playing it safe as they elect to allow the contracts to drift mostly lower into Tuesday's noon hour. Yes, pork cutout values are up slightly, but with only a $0.02 gain being shown at noon in the carcass price, that's not enough added support to convince traders that the futures complex should trade higher. With packing plants closed Thursday for the holiday and no trade in the futures complex, lackadaisical tones will likely remain with the market through the weekend. July lean hogs are down $0.10 at $89.10, August lean hogs are up $0.85 at $89.00 and October lean hogs are down $0.25 at $73.85.
Hog prices on the Daily Direct Morning Hog Report average $89.93, ranging from $85.00 to $93.00 on 3,863 head and a five-day rolling average of $89.16. Pork cutouts total 137.09 loads with 120.97 loads of pork cuts and 16.12 loads of trim. Pork cutout values: up $0.02, $95.43.
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