GENERAL COMMENTS:
Livestock futures are mixed as the markets try to balance out both their technical and fundamental cues. The feeder cattle market isn't performing well as traders are quiet and corn is slightly higher. The live cattle complex is trying to keep some of its momentum throughout the board, but with the cash cattle market not aiding in any support that's becoming harder and harder to do. And the lean hog market has been given another gust of support as more export opportunities may become available since African swine fever has been detected in some domestic herds in Germany. December corn is up 4 1/4 cents per bushel and December soybean meal is up $5.10. The Dow Jones Industrial Average is down 90.44 points and NASDAQ is down 17.81 points.
LIVE CATTLE:
It's not very often the futures market toes the line and genuinely tries to trade higher in the live cattle complex, but this past week the market has worked vigorously. It's maddening that the cash cattle market wasn't able to use the board's positive momentum to its advantage; but when packers have cattle secured for weeks ahead there's little that feedlots can do to entice them to support the cash cattle market. August live cattle are down $0.10 at $121.02, October live cattle are up $0.05 at $126.57 and December live cattle are up $0.12 at $131.92. Friday's cash cattle trade has been genuinely nonexistent as packers are letting the day pass, seeming to have their needs met for the week. There could be some trade this afternoon if packers need another load or two. But, all in all, it's looking like the week's business is done.
Boxed beef prices are lower: choice down $2.24 ($267.63) and select down $0.43 ($252.05) with a movement of 100 loads (52.18 loads of choice, 20.70 loads of select, zero loads of trim and 26.83 loads of ground beef).
FEEDER CATTLE:
Friday's trade hasn't been inspiring for the feeder cattle market as corn ticks slightly higher and traders continue to sit on the sidelines, seeming to not want to risk their positions ahead of the weekend. August feeders are down $1.17 at $156.20, September feeders are down $0.65 at $158.57 and October feeders are down $0.70 at $160.50. The fact that the live cattle complex is fighting to keep some of its contracts trending higher could be a token of support that the feeder cattle contracts try to grasp. But with traders unwilling to do much of anything, the contracts are left to drift lower.
LEAN HOGS:
Just as the world is exhausted from the effects of COVID-19, another beast that the world can't seem to tame is the continuous spread of Africa swine fever (ASF). Friday morning news broke that Germany has now found ASF in some of their domestic pigs. The country has found cases of it in wild boars, but never before in their domestic herds. The futures market has obviously caught wind of this news and hopes to be able to capture more export opportunities. The Friedrich Loeffler Institute in Germany stated: "Affected are an organic farm in the district of Spree-NeiBe, where one sow died, and a small holding with two pigs in the district of Markisch-Oderland. The organic farm is located in an infected core zone established because of ASF in wild boar; the small holding in a so-far ASF-free white zone." August lean hogs are up $1.02 at $105.32, October lean hogs are up $1.07 at $90.47 and December lean hogs are up $1.00 at $83.80.
The projected CME Lean Hog Index for 7/15/2021 is up $0.55 at $111.89, and the actual index for 7/14/2021 is up $0.34 at $111.34. Hog prices are lower on the National Direct Morning Hog Report, down $2.30 with a weighted average of $106.57, ranging from $105.00 to $110.75 on 3,011 head and a five-day rolling average of $109.57. Pork cutouts total 119.79 loads with 95.82 loads of pork cuts and 23.97 loads of trim. Pork cutout values: up $3.58, $123.10.
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