GENERAL COMMENTS:
Livestock futures are mixed Friday morning with nearby live cattle and lean hog futures shifting to new contract highs and continue to focus on underlying strong fundamental and technical support developing across the complex. Feeder cattle futures have temporarily taken the foot off of the accelerator, although prices still remain at or near contract highs. The late week pullback in feeder cattle trade likely has more to do with end of the week positioning and outside market direction than actual fundamental market shifts in the cattle market. July corn is up 3 1/4 at $4.428 and July soybean meal is down $1.30 at $295.8. The Dow Jones Industrial Average is up 394.01 at 42,713.75.
LIVE CATTLE:
Live cattle futures continue to hold firm market support with nearby June through December contracts able to post follow-through gains late in the week. June futures are leading the market higher midday with a $1.60 per cwt rally, moving prices to $224.50 per cwt during morning trade. The ability to hold prices at or above contract highs is likely to help solidify additional buyer support early next week. Cash cattle markets have seen light trade reported in parts of Nebraska this morning at $242 live, $2 higher than Thursday's business and $7 above last week's weekly average. Asking prices for cattle left on showlists are around $233-plus in the South, and $383-plus in the North. So far this week, live trade in Kansas and Texas has had a range of $225 to $232, $3 to $10 higher than last week's weighted averages. Dressed deals in Nebraska and Iowa have been done at mostly $380, $13 higher than the prior week's weighted average basis in Nebraska. June live cattle are $1.28 higher at $224.17, August live cattle are $0.88 higher at $217.7, October live cattle are $0.30 higher at $214.275.
Boxed beef prices are mixed: choice down $1.36 ($365.49) and select up $0.10 ($356.71) with a movement of 61.89 loads (42.35 loads of choice, 4.90 loads of select, 8.02 loads of trim and 6.62 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures still remain strong, although Friday trade has seen the feeder cattle complex as the one market which has been unable to continue higher through the morning. Very little has changed in the overall direction of the market, allowing traders a chance to square positions at the end of the week. Current market moves are not seen as technically or fundamentally significant, which is likely to limit overall volume through the rest of the trading session. August feeders are $0.23 lower at $308.925, September feeders are $0.45 lower at $307.85 and October feeders are $0.35 lower at $305.725.
LEAN HOGS:
Lean hog futures have become the bright spot of livestock trade Friday morning with moderate to strong gains developing in nearby contracts. July futures are holding a $1.45 per cwt rally at midday helping to solidify all summer contracts well above the $100 per cwt level. Continued outside market support and the potential for follow-through demand support over the coming weeks and months could help bring additional buyer interest into both nearby and deferred futures contracts.
June lean hogs are $0.55 higher at $101.40, July lean hogs are $1.28 higher at $106.075 and August lean hogs are $0.88 higher at $107.925. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.74 with a weighted average of $99.62, ranging from $90.00 to $105.00 on 1,479 head with a five-day rolling average of $100.68. Pork cutouts totaled 196.47 loads with 180.74 loads of pork cuts and 15.73 loads of trim. Pork cutout values are up $0.96 at $106.58.
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