Friday, July 1, 2022

Friday Midday Livestock Market Update - Supportive Tones Help Contracts

GENERAL COMMENTS:

The livestock market has chosen a stronger tone heading into Friday's afternoon and it's seeming like the support is sound enough that the contracts stand a chance of rounding out the day fully higher. Heading into next week's market the lean hog complex could be pressured again as demand was questionable before the Fourth of July, and so time will only tell what pork demand will be afterwards. December corn is down 10 1/2 cents per bushel and December soybean meal is down $17.00. The Dow Jones Industrial Average is down 53.86 points.

LIVE CATTLE:

The live cattle market is heading into Friday's afternoon fully higher after trending mostly lower earlier in the week. August live cattle are up $2.70 at $135.27, October live cattle are up $1.82 at $140.60 and December live cattle are up $1.45 at $146.32. It's unfortunate that the board's support comes later in the week as the supportive undertones could have helped the cash cattle market get the prices that feedlots yearned for, but it's promising that the market didn't break below the nearby support plane at $132.00. The cash cattle market hasn't seen any renewed interest and fair to say that this week's trading is done. Throughout the week, Southern live cattle have traded for $138, which is steady to $1.00 lower than last week. Northern dressed cattle have traded for $234, which is steady to $1.00 lower as well.

Boxed beef prices are mixed: choice down $0.47 ($263.53) and select up $0.03 ($240.60) with a movement of 71 loads (41.58 loads of choice, 18.13 loads of select, 5.41 loads of trim and 5.51 loads of ground beef).

FEEDER CATTLE:

The corn market's plummet has helped the feeder cattle market trade sustainably higher this past week, which has been perfectly timed as buyers have been hitting sales aggressively and procuring the cattle they need. August feeders are up $1.35 at $174.95, September feeders are up $1.80 at $178.02 and October feeders are up $2.05 at $180.72. Early next week, the feeder cattle market could be slow as most sales that host regular offerings in the first half of the week will be closed. Sale barns that host weekly sales Wednesday through Friday are seeming to keep with their normal schedule, but volumes will likely be thinly traded next week.

LEAN HOGS:

The lean hog market is trudging into Friday's afternoon split, as the nearby contracts trade mildly higher, but the deferred contracts are trading slightly lower. With demand being a big question mark for the pork market (both domestically and internationally) traders are leery of over supporting the market when processing speeds have been lacks. If supplies begin to build up, the market could come under pressure quickly. July lean hogs are up $0.57 at $109.70, August lean hogs are up $0.70 at $102.80 and October lean hogs are up $0.40 at $89.12.

The projected lean hog index for June 30 is down $0.14 at $110.70, and the actual index for June 29 is down $0.40 at $110.84. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.86 with a weighted average of $113.25, ranging from $110.00 to $123.00 on 3,859 head and a five-day rolling average of $116.32. Pork cutouts total 180.90 loads of pork cutouts with 172.81 loads of pork cuts and 8.09 loads of trim. Pork cutout values: up $1.01, $108.26.



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