GENERAL COMMENTS:
The livestock complex is trading mixed as higher corn prices are affecting both the lean hog and feeder cattle complex, and the note of some cheaper cash cattle trade in the South is keeping the nearby live cattle contracts trading mildly lower. More trade will need to develop ahead of the week's end and given that only a handful of cattle have traded, prices are still anyone's guess. December corn is up 6 1/4 cents per bushel and December soybean meal is up $2.40. The Dow Jones Industrial Average is down 34.82 points.
LIVE CATTLE:
The live cattle complex is seeing mixed support throughout the futures complex as the market's nearby contracts trade lower, but the deferred months are keeping with their mild rally. August live cattle are steady at $179.10, October live cattle are down $0.40 at $179.60 and December live cattle are down $0.37 at $183.80. There's been some light trade reported in the South at $179, which is roughly $1.00 lower than last week's weighted average. Some bids are being offered in the Noth at $185 live and $294 to $295 dressed but, thus far, feedlots haven't seemed interested in them. Asking prices in the South remain firm at $181 to $182. Given that this week is another Cattle on Feed report week, it's not unusual to see the cash cattle market timid and somewhat softer.
Boxed beef prices are higher: choice up $1.41 ($308.67) and select up $1.92 ($284.95) with a movement of 69 loads (35.90 loads of choice, 21.22 loads of select, zero loads of trim and 11.61 loads of ground beef).
FEEDER CATTLE:
With corn prices dancing $0.07 higher into Wedneday's noon hour, the feeder cattle contracts are grumbly kicking rocks as they trail mildly lower into Wednesday's noon hour. With the live cattle complex also trading lower and cash cattle prices starting to develop in the South for $1.00 lower, the feeder cattle market would love nothing more than for traders to cling to the unwavering demand in which buyers are expressing at feeder cattle sales across the country but, at this time, the pressures of the market seem to be bearing more merit than the support. August feeders are down $0.65 at $245.22, September feeders are down $0.75 at $249.02 and October feeders are down $0.57 at $250.97.
LEAN HOGS:
The lean hog complex is continuing to trade lower, although the market is only doing so mildly compared to the steep losses seen earlier this week. Traders deemed that it wasn't in the cards right now to blow past the resistance at $86.00 in the October contract, but now that the market's trading around $78.00, there isn't near the technical pressure to try to manage. More than anything, the hog complex needs support fundamentally. And, with there seeming to be more questions surrounding Prop 12 as opposed to answers, finding that fundamental support could be a challenge for the market in the near term.
The projected lean hog index for Aug. 15 is down $0.90 at $101.03, and the actual index for Aug. 14 is down $0.64 at $101.93. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.12 with a weighted average price of $93.74, ranging from $90.00 to $96.50 on 2,894 head and a five-day rolling average of $95.34. Pork cutouts total 141.96 loads with 131.29 loads of pork cuts and 10.67 loads of trim. Pork cutout values: down $0.96, $107.67.
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