General Comments
As
the day inches closer to the noon mark, cattle contracts are weakening
as the entire complex regresses knowing that the afternoon will be hefty
in USDA reports. The day started out strong, confident and ready to
trade steadily higher but as time progressed bearishness floated into
the market. December corn is down 1/4 cent per bushel and December
soybean meal is up $0.60. The Dow Jones Industrial Average is down
131.24 points and NASDAQ is down 105.20 points.
LIVE CATTLE
As
the day gets closer and closer to the start of the afternoon, the live
cattle complex is losing some of its vigor and is meekly trading lower.
August live cattle are up $0.25 at $142.30, September live cattle are
down $0.15 at $143.02 and October live cattle are down $0.25 at $143.17.
Earlier in the day the industry saw cattle contracts rallying and
posting modest gains but as the afternoon rolls around and the market
prepares for a COF report and Cattle Inventory report,
bearish-nervousness flows through the complex. Packer in inquiry remains
slim heading into the afternoon with just a handful of bids on the
table. One packer has bids on cattle in Kansas live for $96 to $96.75,
and one Regional packer has an isolated bid of $161 for some dressed
cattle in Nebraska. It's becoming clearer that the Southern states of
Kansas and Panhandle are still stocked with cattle contributing to the
backlog, where Nebraska and Iowa are more current.
Boxed
beef prices are mixed: choice down $0.65 ($201.61) and select up $1.29
($192.08) with a movement of 65 loads (27.66 loads of choice, 12.76
loads of select, 9.40 loads of trim and 15.51 loads of ground beef).
FEEDER CATTLE
Upon
seeing the live cattle market weaken, the feeder cattle complex
fluttered lower in a panic. August feeders are up $0.15 at $142.17,
September feeders are down $0.15 at $143.02 and October feeders are down
$0.37 at $143.05. The market will most likely continue to creep lower
as pressure from USDA reports looms over the marketplace.
LEAN HOGS
The
lean hog complex was eager to trade higher in the day but has felt the
same pressure cattle contracts have. If traders weren't reluctant about
trading higher into the afternoon, and if the complex could rally the
support the industry is ready to trade higher as cash prices jump over
$1.00 higher. August lean hogs are up $0.50 at $53.97, October lean hogs
are up $0.65 at $50.37 and December lean hogs are down $0.15 at $52.05.
The
projected lean hog index for 7/23/2020 is up $0.45 at $50.14, and the
actual index for 7/22/2020 is up $0.26 at $49.69. Hog prices are higher
on the National Direct Morning Hog Report, up $1.88 with a weighted
average of $36.87, ranging from $32.00 to $41.00 on 6,818 head and a
five-day rolling average of $34.11. Pork cutouts totaled 212.43 loads
with 197.85 loads of pork cuts and 14.58 loads of trim. Pork cutout
values: up $3.26, $72.93.
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