Tuesday Midday Livestock Market Summary - Lean Hogs Lead Market Higher

GENERAL COMMENTS:

The focus on higher lean hog futures seems to be allowing many traders to hover on the sidelines as they wait for additional long-term direction indicators. The strong shift higher in pork cutout values in the morning report is helping solidify buying. December corn is down 5 cents per bushel and December soybean meal is down $3.80. The Dow Jones Industrial Average is up 283 points and NASDAQ is down 57 points.

LIVE CATTLE:

Mixed trade slowly developed Tuesday morning in live cattle futures with narrow market shifts. August futures are 32 cents lower at $101.95 per cwt, while the rest of the complex remains stuck in a sideways, 10-cent trading range. The overall lack of movement could allow for some late-day market shifts. Cash cattle trade is slow to develop this early in the week. Despite a few cattle traded at $157 per cwt in Nebraska on Monday afternoon, bids remain quiet Tuesday and active trade may not be seen until the last half of the week. Asking prices are becoming more available at $100 live in the South and $162 per cwt dressed in the North.

Boxed beef prices are mixed: choice down $0.83 ($200.91) and select up $0.67 ($192.26) with a movement of 76 loads (38.95 loads of choice, 11.71 loads of select, 4.47 loads of trim and 20.63 loads of ground beef).

FEEDER CATTLE:

Limited gains in feeder cattle futures seem to be holding the firming pattern seen over the last couple of weeks. Prices are unable to break out of the current pattern as traders remain uncertain just how much further support will develop in nearby live cattle trade. Strong pressure in corn prices also helped bring limited buying to the feeder cattle complex.

LEAN HOGS:

After a slow start Tuesday morning, additional commercial buyer interest developed in lean hog futures. This moved nearby contracts 90 cents to $1 per cwt higher with October futures leading the complex at $50.20 per cwt. The ability to hold contracts above $50 per cwt at the end of the session is expected to spark additional midweek support.

The projected lean hog index for 7/20/2020 is up $0.74 at $48.64 and the actual index for 7/17/2020 is up $0.35 at $47.90. Hog prices are unavailable on the National Direct Morning Hog Report due to packer submission problems. Pork cutouts total 229.09 loads with 205.27 loads of pork cuts and 23.83 loads of trim. Pork cutout values: up $4.19, $72.63.

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