Friday Midday Livestock Market Summary - Early Cattle Gains Hold

General Comments

Active gains in cattle trade are offsetting sharp hog market losses. Sluggish market activity is allowing for increased overall movement in prices, even though the long term direction may not change once active trade volume returns next week. Corn futures are mixed in light trade. September corn futures are 3/4 cent higher. Stock markets are lower in light trade. Dow Jones is 125 points lower with NASDAQ down 54 points.

LIVE CATTLE:

Limited trade activity is seen Friday, but this has not limited aggressive price gains in all cattle trade. August and October futures are holding gains at or near $2 per cwt, allowing for increased support through the entire complex. This move higher may continue to spark technical support next week, allowing for increased commercial interest moving into the complex. Cash cattle activity appears to be done for the week with bids unavailable Friday. Live trade developed Wednesday, with most sales at $109, fully steady with last week, while dressed business at $180 in most areas is generally $1 per cwt higher. This firmness and recent futures gains, will likely support higher asking prices next week. Boxed Beef cut-outs at midday are lower, $0.21 lower (select) and down $1.09 per cwt (choice) with active movement of 78 total loads reported (61 loads of choice cuts, 18 loads of select cuts, 8 loads of trimmings, 16 loads of ground beef).

FEEDER CATTLE:

Prices are surging higher with August futures holding a $2.25 per cwt rally as strong price gains are holding in live cattle trade and limited movement in corn prices is offsetting early-week pressure. Limited volume is expected through the end of the session, along markets to likely hold current gains into closing bell and the weekend break.

LEAN HOGS:

Active losses have developed in lean hog trade following pre-holiday selling seen through the entire complex. Triple-digit losses are holding following general weakness in the lightly traded Friday session. It is expected that markets will continue to hold $1 to $2 per cwt losses into closing bell with little to no long term direction or additional information developing across the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $1.52 at $65.62 per cwt with the range from $58 to $66.75 on 3,255 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. Pork values firmed in post holiday buying. Pork cutouts added $1.13 per cwt at $72.61 per cwt with 129 loads traded.

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