Thursday, July 7, 2022

Thursday Midday Livestock Market Update - Cash Cattle Begin to Trade

GENERAL COMMENTS:

The cash cattle market has finally begun to see cattle after waiting long into the week for the market's trend to develop. Northern feedlots are selling cattle anywhere from $147 to $151, and in the South feedlots are selling cattle for mostly $137. The feeder cattle market has taken a lower approach to Thursday's market as the corn market has regained support and is trending higher. December corn is up 10 3/4 cents per bushel and December soybean meal is up $9.60. The Dow Jones Industrial Average is up 284.77 points.

LIVE CATTLE:

The cash cattle market is finally starting to see some interest after feedlots put up a good fight in deferring the week's business in hopes of driving prices higher. The Southern plains is seeing cattle sell for mostly $137 (which is steady to $1.00 lower than last week), and in the North cattle are selling anywhere from $147 to $151 (which is steady to $1.00 higher than last week). Given that packers have cattle committed for this week and next, it's unlikely that this week's volume is very big. August live cattle are up $0.12 at $134.62, October live cattle are down $0.10 at $139.85 and December live cattle are up $0.15 at $145.50. Helping bode well for both packers and feedlots is that the boxed beef market has found some strength. As packers receive an uptick in the price for meat they're selling to retailers, they'll likely be somewhat more willing to support the cash market. More cattle should trade before the day's end.

Boxed beef prices are higher: choice up $0.26 ($268.31) and select up $0.26 ($243.19) with a movement of 79 loads (48.62 loads of choice, 22.99 loads of select, zero loads of trim and 7.19 loads of ground beef).

FEEDER CATTLE:

The feeder cattle contracts are trending lower as the corn market has gained footing and is now trending higher. August feeders are down $0.95 at $172.35, September feeders are down $1.05 at $176.02 and October feeders are down $1.12 at $179.25. With the cash cattle market still not having developed a test on this week's market, the feeder cattle complex has only its own technical and fundamental support to rely on. Feeder cattle demand throughout the countryside has been strong as buyers see the premiums in the deferred live cattle market and hope to capitalize on those higher prices.

LEAN HOGS:

The lean hog market is still trending mostly higher as the market is being fueled by strong pork demand and great interest earlier this week in the cash market. Cash prices are printing lower in Thursday's midday report which isn't odd to see after the sizeable jump the market took on Tuesday and Wednesday. Thankfully to offset the slightly lower cash prices, midday pork cutout values are higher as retailers continue to restock after the 4th of July run. Watching how slaughter speeds fare throughout the rest of the week will be crucial as speeds were weak heading into the 4th of July.

The projected lean hog index for 7/6/2022 is up $0.23 at $110.16, and the actual index for 7/5/2022 is down $0.65 at $109.63. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.83 with a weighted average of $119.31, ranging from $112.00 to $127.00 and on 6,805 head with a five-day rolling average of $118.46. Pork cutouts total 174.33 loads with 153.88 loads of pork cuts and 20.45 loads of trim. Pork cutout values: up $1.61, $113.11.




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