GENERAL COMMENTS:
The cattle complex is trading mixed as cautious, hesitant tones dominate the sector. The lean hog contracts are being the most aggressive as Monday's noon hour approaches, but the cattle contracts aren't as confident as corn prices have been extremely volatile. December corn is down 1 1/2 cents per bushel and December soybean meal is down $0.90. The Dow Jones Industrial Average is up 44.16 points.
LIVE CATTLE:
The live cattle complex is trading mixed as traders wonder what this week's cash cattle market will amount to. Over the last two weeks, cash prices have regressed, and now the market is seeing some additional pressure from weaker box prices. And while we seasonally expect to see a dip in box prices during this time, it still plays well into packer's position as they desperately want to regain leverage in the cash cattle complex. August live cattle are up $0.02 at $170.80, October live cattle are down $0.25 at $174.25 and December live cattle are down $0.07 at $178.62. No asking prices or bids have been listed at this point, and the week's cash cattle trade won't likely develop until Wednesday or later.
Last week a light trade took place Tuesday through Thursday, with just a little cleanup on Friday. Southern live deals were marked at $174 to $182, mostly $180, $2 lower than the prior week's weighted averages. Northern dressed deals had a full range of $280 to $292, mostly $290, $6 lower than the previous week's weighted averages.
Boxed beef prices are lower: choice down $1.35 ($332.66) and select down $0.26 ($299.70) with a movement of 34 loads (16.92 loads of choice, 6.20 loads of select, 5.17 loads of trim and 5.89 loads of ground beef).
FEEDER CATTLE:
With Friday's COF report showing a greater placement number than expected, and with nearby corn prices trading anywhere from $0.01 lower to $0.13 higher, it's commendable that the feeder cattle contracts are holding up as good as they are. The market flirted with the idea of trading lower earlier in the day, but as the noon hour quickly approaches, the feeder cattle contracts are now trading higher. August feeders are up $0.25 at $234.10, September feeders are up $0.12 at $237.82 and October feeders are up $0.07 at $240.22.
LEAN HOGS:
Last week's late descend is helping the lean hog contracts trade higher Monday morning as traders aren't up against immediate resistance pressure. The lean hog market is however trading noticeably higher as it's nearby contracts trend anywhere from $1.00 to $2.00 stronger as the noon hour nears. I'd be surprised to see the market push beyond the resistance at $95.00 before seeing what Thursday's Quarterly Hogs and Pigs report unveils as there's a good chance that the breeding herd inventory sees a reduction, but we know not to put the horse before the cart when it comes to USDA report. Cash hog prices are up over $4.00 higher this morning, but only a lousy 397 head have traded. July lean hogs are up $2.65 at $93.92, August lean hogs are up $1.62 at $91.30 and October lean hogs are up $1.00 at $80.97.
The projected lean hog index for June 23 is up $0.71 at $92.11 and the actual index for June 22 is up $0.94 at $91.41. Hog prices are higher on the Daily Direct Morning Hog Report, up $4.40 with a weighted average price of $92.06, ranging from $84.00 to $94.00 on 397 head and a five-day rolling average of $95.06. Pork cutouts total 149.18 loads with 132.66 loads of pork cuts and 16.52 loads of trim. Pork cutout values: up $1.25, $98.61.
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