GENERAL COMMENTS:
With packers aggressively pushing the cash hog market up over $6.00 higher Wednesday morning, it's no wonder the lean hog complex is trading higher into Wednesday's noon hour. But, unfortunately, the cattle complex hasn't come into that much support, so both the live cattle and feeder cattle contracts are lower. December corn is down 2 3/4 cents per bushel and December soybean meal is down $0.80. The Dow Jones Industrial Average is up 230.53 points.
LIVE CATTLE:
Even though boxed beef prices are higher, traders thus far haven't found enough support in Wednesday's market to comfortably allow the live cattle complex to trade higher. August live cattle are down $0.90 at $186.80, October live cattle are down $1.17 at $186.27 and December live cattle are down $0.90 at $187.27. If the cash cattle market is indeed able to trade cattle higher this week, that may be enough support to change trader attitudes. But at this point no cash sales have developed. Asking prices are noted in the South at $190 to $192 but are still not established in the North. Given that no bids are currently being offered, it looks like trade will be delayed until Thursday or even potentially Friday.
Boxed beef prices are higher: choice up $0.95 ($315.43) and select up $0.60 ($301.98) with a movement of 81 loads (54.23 loads of choice, 11.91 loads of select, 7.82 loads of trim and 6.78 loads of ground beef).
FEEDER CATTLE:
Once again, because the live cattle contracts are trading lower, the feeder cattle contracts are following suit. August feeders are down $0.25 at $256.72, September feeders are down $0.50 at $256.45 and October feeders are down $0.45 at $255.42. Unless something positive develops in the fed cash cattle market or the live cattle complex has a change of heart and begins to trade higher, it's likely feeders will round out the day with this weaker tone.
LEAN HOGS:
The lean hog complex is higher as we approach Wednesday's noon hour as traders can hardly believe packer demand already this morning. Packers have been aggressive in this morning's market as they've already bought over 12,000 head of hogs and in doing so have pushed the cash market $6.12 higher. Meanwhile, pork cutout values are lower, which is really only because the ham has fallen $7.22; otherwise most of the cuts are trading higher and there's still a chance the afternoon carcass price could turn higher. August lean hogs are up $0.60 at $91.80, October lean hogs are up $1.00 at $75.80 and December lean hogs are up $0.72 at $68.35.
The projected CME Lean Hog Index for 7/30/2024 is up $0.49 at $93.08, and the actual index for 7/29/2024 is up $0.30 at $92.59. Hog prices are higher on the Daily Direct Morning Hog Report, up $6.12 with a weighted average price of $85.80, ranging from $78.00 to $88.75 on 12,093 head and a five-day rolling average of $85.01. Pork cutouts total 164.72 loads with 131.09 loads of pork cuts and 33.62 loads of trim. Pork cutout values: down $0.66, $104.94.
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