GENERAL COMMENTS:
It's frustrating to see the cattle contracts again trading lower when the market's fundamentals have been strong this week. Unfortunately, that's sometimes how "the cookie crumbles" when the market's technical influence has more power than its fundamentals do. A single bid is currently on the table in Nebraska at $405, but no new trade has been noted. July corn is up 4 3/4 cents per bushel and July soybean meal is up $1.80. The Dow Jones Industrial Average is up 10.47 points and NASDAQ is up 371.80 points.
LIVE CATTLE:
It's been a day of back-and-forth trading. Initially, the live cattle complex was trading higher as traders seemed to acknowledge the strong fundamental support of this week's cash market -- but lo and behold -- that train of thought obviously didn't last long, as now, heading into the noon hour, the contracts are back to trading lower. More than anything, the last two days have been a prime example of algorithm trading, which can lead the market in the exact opposite direction compared to what the market's fundamental influences would encourage. June live cattle are down $0.05 at $250.00, August live cattle are down $0.72 at $245.17 and October live cattle are down $1.17 at $238.80. A single bid is currently on the table in Nebraska at $405, but no cattle have traded yet today following Thursday's business. So far this week, Northern dressed cattle have traded at mostly $402, which is $3.00 higher than last week's weighted average. Southern live cattle have been marked at mostly $256 to $257, which is $2.00 to $3.00 higher than the previous week's weighted average.
Boxed beef prices are higher: choice up $2.08 ($389.02) and select up $0.75 ($385.17) with a movement of 82 loads (60.84 loads of choice, 8.85 loads of select, 7.01 loads of trim and 5.68 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is also trading lower into Friday's noon hour as the market continues to closely track and follow the direction of the live cattle complex. May feeders are down $0.57 at $265.75, August feeders are down $2.52 at $363.65 and September feeders are down $2.72 at $361.92. It's disappointing to see both the live cattle and feeder cattle contracts trading lower when the market's fundamentals are strong, but unfortunately, the market's technical influence seems to hold more power this week.
LEAN HOGS:
The lean hog complex is trading mixed into Friday's noon hour with a few of the deferred months trading higher, but by and large the complex is trading mostly lower. June lean hogs are down $0.62 at $98.75, July lean hogs are up $0.15 at $103.10 and August lean hogs are steady at $104.10. It is worth noting that demand is strong as pork cutout values are up over $2.00 this morning, but with that support coming late in the week, it's unlikely to make a significant impact.
The projected lean hog index is delayed from the source. Hog prices are unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 236 head have traded this morning and that the market's five-day rolling average now sits at $95.11. Pork cutouts total 227.41 loads with 191.67 loads of pork cuts and 35.74 loads of trim. Pork cutout values: up $2.11, $97.71.
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