Tuesday, July 16, 2024

Tuesday Midday Livestock Market Summary - Hogs Rally Upon Technical Support and Stronger Consumer Demand

GENERAL COMMENTS:

The cattle contracts continue to trade cautiously, but the lean hog complex is rallying into Tuesday's noon hour. Still no cash cattle trade has developed, and it looks like the week's trade could be delayed until Wednesday or later. December corn is up 5 3/4 cents per bushel and December soybean meal is up $1.30. The Dow Jones Industrial Average is up 592.89 points.

LIVE CATTLE:

The live cattle complex is merely trading sideways, waiting for the week to present something worthwhile and give traders a reason to move the market one way or another. But at this point, no cash cattle trade has developed, boxed beef prices are trading mixed and so traders remain hesitant market participants. August live cattle are up $0.10 at $182.22, October live cattle are steady at $183.85 and December live cattle are up $0.12 at $185.80. It's looking the like the cash cattle market could wait to trade until Wednesday or later as still no packer interest has developed and asking prices remain illusive at this point.

Boxed beef prices are mixed: choice down $1.00 ($320.49) and select up $0.60 ($305.42) with a movement of 55 loads (32.50 loads of choice, 13.31 loads of select, zero loads of trim and 8.71 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex needs a little extra "umph" of support before traders will likely again move the contracts higher. Because between the live cattle contract's steady/somewhat lower trend, and nearby corn prices up slightly, traders are continuing to play the market cautiously as they'd like to see more technical support. But thankfully even with the market's slight downward ascend, the complex is still trading closely in line with its 100 day and 40 day moving averages. August feeders are down $0.80 at $257.97, September feeders are down $0.25 at $258.65 and October feeders are down $0.17 at $258.30.

LEAN HOGS:

The lean hog complex is rocking-and-rolling thus far through Tuesday's trade as the futures complex is trading fully higher and the market is seeing better consumer demand pork cutout values are higher. The midday carcass prices are a little skewed because the ham jumped a whopping $7.32, which significantly increased the carcass prices, but all in all, the cuts are trending higher as the only cut with a lower price at noon is the picnic which is down $1.00 -- otherwise every other cut is prices higher. August lean hogs are up $2.77 at $91.20, October lean hogs are up $2.32 at $72.10 and December lean hogs are up $1.70 at $64.07.

The projected lean hog index is delayed from the source. Hog prices are unavailable on the Daily Direct Morning Hog Report due to packer submission issues. Pork cutouts total 158.51 loads with 137.94 loads of pork cuts and 20.57 loads of trim. Pork cutout values: up $2.48, $100.77.



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