GENERAL COMMENTS:
The livestock complex is trading mixed as cattle trade mostly higher despite seeing mildly higher corn prices printed throughout Monday morning's market. The lean hog complex isn't as bold as it wants to see how Wednesday's WASDE report shapes up before it trades any higher. December corn is up 6 cents per bushel and December soybean meal is up $4.20. The Dow Jones Industrial Average is up 126.17 points.
LIVE CATTLE:
The spot August contract is the only live cattle contract not currently trading higher. Traders ran the complex sharply higher last Friday but, now that Monday's market has rolled around, they're skeptical of breaking beyond the market's current resistance plane. It's likely that traders could remain skeptical until they see how this week's cash cattle market plays out. Trade isn't likely to develop until late in the week again as feedlots are scrapping for every dollar the market has to spare. Packers were able to get a handful of cattle committed to the deferred delivery which gives them more leverage, unfortunately. August live cattle are down $0.20 at $176.80, October live cattle are up $0.27 at $179.65 and December live cattle are up $0.25 at $183.37. New showlists appear to be mixed, larger in Texas and Nebraska/Colorado, but lower in Kansas.
Last week's negotiated cash cattle trade totaled 75,381 head. Of that, 71% (53,371 head) were committed for the nearby delivery, while the remaining 29% (22,010 head) were committed for the deferred delivery.
Boxed beef prices are mixed: choice down $2.36 ($314.54) and select up $0.83 ($286.46) with a movement of 43 loads (26.10 loads of choice, 7.37 loads of select, 3.65 loads of trim and 6.26 loads of ground beef).
FEEDER CATTLE:
Even though the nearby corn contracts are trending $0.05 to $0.07 higher, the feeder cattle contracts are keeping with their mild rally as demand has been excellent and supplies of calves/feeders are gravely this year. Superior Livestock Auction is hosting their Week in the Rockies sale this week and it will be another great test of the market and help establish feeder cattle prices for the year. The Superior's Corn Belt Classic sale was a barn burner compared to last year's prices, and it will be interesting to see if price remain steady with price points established earlier this spring, or if they will grow even stronger. August feeders are up $0.02 at $245.45, September feeders are down $0.02 at $248.57 and October feeders are up $0.22 at $250.45.
LEAN HOGS:
The lean hog complex ran higher last week but, as the market waits to see what Wednesday's WASDE report brings, there's some skepticism in the market Monday morning. August lean hogs are down $0.30 at $94.77, October lean hogs are down $0.20 at $81.17 and December lean hogs are up $0.02 at $76.05. Part of the market's hesitancy lies in the fact that pork cutout values have been volatile with the wide price swings in the belly. Just this morning the belly is up $21.18, which heavily influences the cutout carcass price.
The projected lean hog index for July 7 is up $0.72 at $98.15, and the actual index for July 6 is up $1.36 at $97.43. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.48 with a weighted average price of $96.18, ranging from $82.50 to $100.00 on 1,220 head and a five-day rolling average of $99.46. Pork cutouts total 114.52 loads with 103.40 loads of pork cuts and 11.12 loads of trim. Pork cutout values: up $3.52, $111.46.
No comments:
Post a Comment