Tuesday Midday Livestock Market Summary

GENERAL COMMENTS: 

Activity in feedlot country this morning is limited to the distribution of new showlists. The early month offering appears to be mixed, larger in Colorado, smaller in Kansas and Nebraska, and about unchanged in Texas. Overall, ready numbers of fed steers and heifers seem to be somewhat smaller. According to the midday report, the national hog base is $1.80 lower compared with the Prior Day settlement ($75.00-81.00, weighted average $79.24). Corn futures are generally 3 cents lower near the top of the noon hour, pressured by improving growing crop conditions. The Dow is posting a new record high at midday, up 87 points at 21,918. On the other hand, the Nasdaq is off 17.

LIVE CATTLE:

Live tracts are generally 42 to 95 points lower near midday, pressured by long liquidation and technical selling. While price action has been choppy through the morning, business has essentially been stuck in red ink. For the moment, spot August continues to find support in the 112-112.50 area. A close below that level would probably trigger more long liquidation. Beef cut-outs are mixed at midday, up $1.69 (select, $188.56) to off 002 (choice, $206.20) with light box movement (36 loads of choice cuts, 9 loads of select cuts, zero loads of trimmings, 11 loads of coarse grinds).

FEEDER CATTLE:

Feeder prices are mixed at midday, pushed and pulled by defensiveness in the live market on one hand and lower corn prices on the other. On an estimated run of 3,000 head (somewhat below last week and smaller than receipts of 5,439 in 2016), Oklahoma City is called steady/firm at midday.

LEAN HOGS:

Lean futures are moderately lower as traders move into the session's final hour. Spot August seems to be catching the most selling/ling liquidation interest thanks to signs that hog buyers continue to hammer away at country sales. Carcass value at midday is sharply higher with all primals showing decent progress except the picnic. Pork cut-out: $100.67, up $1.92. CME cash lean index for 07/27: 88.75, off 064 (DTN Projected lean index for 07/28: 88.10, off 0.65).