GENERAL COMMENTS:
It's a mixed morning for the livestock complex as the cattle contracts are trading higher, but the lean hog complex is drifting lower as fundamental support isn't as strong as traders hoped it would be. New showlists appear to be mixed, higher in Texas, and Nebraska/Colorado, but lower in Kansas. July corn is down 1/4 cent per bushel and July soybean meal is down $0.50. The Dow Jones Industrial Average is up 148.81 points and the NASDAQ is up 48.89 points.
LIVE CATTLE:
Believe it or not, the live cattle complex is trading mostly higher into Monday's noon hour following the large surge in which the market accomplished last Friday. August live cattle are up $0.12 at $213.52, October live cattle are up $0.05 at $209.87 and December live cattle are down $0.15 at $210.02. More than anything traders seem to be looking at the market's regression and seem to believe that enough immediate downside pressure has been endured for the meantime. Now what's perplexing about that conclusion is that traders are willing to advance the contracts amid mixed market fundamentals: boxed beef prices continue to scale higher while fed cash cattle prices are drifting lower. Thankfully Friday's surge of the contracts helped push the spot August contract back above its 40-day moving average, which will continue to be a threshold to monitor. New showlists appear to be mixed, higher in Texas, and Nebraska/Colorado, but lower in Kansas.
Last week Southern live cattle traded at mostly $224 to $225 which is $4.00 to $5.00 lower than the previous week's weighted average and Norther dressed cattle traded at mostly $368 which is $10.00 lower than the previous week's weighted average.
Boxed beef prices are higher: choice up $0.10 ($396.59) and select up $0.65 ($383.58) with a movement of 43 loads (24.49 loads of choice, 10.23 loads of select, zero loads of trim and 8.21 loads of ground beef).
FEEDER CATTLE:
Following the lead of the live cattle complex, the feeder cattle contracts are also trading fully higher into Monday's noon hour. August feeders are up $2.77 at $310.70, September feeders are up $2.85 at $310.75 and October feeders are up $3.10 at $308.87. But even though the fed cash cattle market has been trading lower in recent weeks, the feeder cattle complex has remained consistent in the countryside as buyers continue to show up and buy aggressively as they need to fill their orders and there simply aren't enough calves to go around to do so in a relaxed manner. Given that this week is a holiday-shortened week for the Fourth of July, feeder cattle sales will be light.
LEAN HOGS:
While the cattle contracts are rallying, the lean hog complex is continuing with its downward trend as the market isn't seeing the fundamental support it needs currently. July lean hogs are down $2.47 at $110.77, August lean hogs are down $2.55 at $107.72 and October lean hogs are down $1.97 at $92.65. Pork cutout values are disturbing to look at this morning as the rib is down $16.25 and the ham is down $6.79.
The projected lean hog index for 6/27/2025 is down $0.26 at $111.76, and the actual index for 6/26/2025 is up $0.13 at $112.02. Hog prices are higher on the Daily Direct Morning Hog Report, up $4.66 with a weighted average price of $112.51, ranging from $104.00 to $113.00 on 706 head and a five-day rolling average of $111.05. Pork cutouts total 211.88 loads with 175.14 loads of pork cuts and 36.74 loads of trim. Pork cutout values: down $0.93, $116.53.
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