GENERAL COMMENTS:
The livestock complex is running higher as cheaper corn prices relieves some input cost stress. The cash cattle market has bids currently being offered in the North, but still no trade has developed. December corn is down 5 cents per bushel and December soybean meal is down $1.10. The Dow Jones Industrial Average is up 283.10 points.
LIVE CATTLE:
The live cattle complex is yet again trading higher as traders see the slight dip in corn prices and continue to put their faith in feedlots as they scrap for higher prices in the cash sector. Bids are beginning to fly in the North, at $188 live and $291 to $294 dressed, but feedlots continue to turn them down as their asking price is firm at $295-plus dressed. The South doesn't have any bids currently being offered and trade could wait to develop until late Friday afternoon like it did last week. August live cattle are up $1.02 at $182.35, October live cattle are up $0.92 at $184.65 and December live cattle are up $0.87 at $187.90.
Beef net sales of 20,900 mt for 2023 were up noticeable from the previous week and up 60% from the previous four-week average. The three largest buyers were South Korea (7,800 mt), Mexico (4,100 mt) and China (2,900 mt).
Boxed beef prices are lower: choice down $1.64 ($301.95) and select down $1.23 ($274.73) with a movement of 92 loads (59.21 loads of choice, 20.91 loads of select, 3.06 loads of trim and 8.89 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading higher as the nearby corn contracts are trading $0.04 to $0.05 lower. The market sees the opportunity in Thursday's marketplace with corn prices down slightly, but the problem long term is that right now all the corn market is a weather market -- meaning that the market could see drastic swings until the corn crop is harvested and feeders know what to expect for feed supplies and feed prices. August feeders are up $0.92 at $247.72, September feeders are up $1.67 at $251.00 and October feeders are up $2.00 at $252.55.
LEAN HOGS:
The lean hog complex is charging full steam ahead into Thursday's noon hour as the market sees opportunity with corn prices currently trading lower. It's also helping that pork cutout values are up moderately in the day's midday report, which, if any luck, keeps with the market through closing, and maybe afternoon prices will close higher too. In the midday report it's the rib (up $10.80), the butt (up $7.47) and the belly (up $6.49) which are seeing the lion's share of the market's demand. August lean hogs are up $3.67 at $101.60, October lean hogs are up $3.67 at $85.40 and December lean hogs are up $2.82 at $77.72.
The projected lean hog index for July 19 is up $0.30 at $103.60, and the actual index for July 18 is up $0.78 at $103.30. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.14 with a weighted average price of $103.11, ranging from $91.00 to $108.00 on 3,410 head and a five-day rolling average of $102.96. Pork cutouts total 134.57 loads with 128.85 loads of pork cuts and 5.72 loads of trim. Pork cutout values: up $3.20, $115.81.
Pork net sales of 19,200 mt for 2023 were down 22% from the previous week and 28% from the prior four-week average. The three largest buyers were China (5,300 mt), Mexico (5,000 mt) and Japan (4,100 mt).
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