GENERAL COMMENTS:
The livestock complex is off to a mixed start as traders remain uncertain what to do with the cattle complex following Friday's technical meltdown, but the lean hog contracts are trading higher. New showlists appear to be mixed, higher in Kansas and Nebraska/Colorado, but lower in Texas. September corn is up 3 1/2 cents per bushel and August soybean meal is up $4.60. The Dow Jones Industrial Average is down 29.02 points and the NASDAQ is up 85.00 points.
LIVE CATTLE:
Following Friday's tumultuous trade, the live cattle complex has scurried back and forth, unsure of what it's supposed to do next. As the noon hour approaches, the live cattle contracts are trading mixed with a level of uncertainty looming above the marketplace. August live cattle are up $0.37 at $232.92, October live cattle are down $0.30 at $225.70 and December live cattle are down $0.05 at $227.87. The market's next support plane lies around $220 in the spot October contract, and if the market broke below that, it would indeed be a bearish signal for the complex. New showlists appear to be mixed, higher in Kansas and Nebraska/Colorado, but lower in Texas.
Last week Southern live cattle traded at $235, which is mostly steady to $0.50 lower than the previous week's weighted average, and Northern dressed cattle traded at mostly $380, which is $4.00 lower than the previous week's weighted average.
Boxed beef prices are higher: choice up $0.51 ($379.35) and select up $1.23 ($356.32) with a movement of 49 loads (19.52 loads of choice, 7.91 loads of select, 14.88 loads of trim and 6.37 loads of ground beef).
FEEDER CATTLE:
Although demand remains red hot in the countryside, the feeder cattle complex is continuing to trade lower as traders remain unsettled in a technical sense. August feeders are up $0.02 at $339.42, September feeders are down $0.45 at $339.80 and October feeders are down $0.27 at $338.97. It wouldn't be surprising to see demand slightly softer in the countryside early this week, as buyers would gladly see prices soften given the record highs at which they've currently been.
LEAN HOGS:
The lean hog complex is trading higher into midday Monday as pork cutout values are higher and traders aren't currently pressured by any immediate resistance pressure. The rib (up $5.99), belly (up $5.31) and the picnic (up $5.17) are helping push the carcass price higher more than anything else. October lean hogs are up $1.27 at $91.95, December lean hogs are up $0.50 at $84.27 and February lean hogs are up $0.15 at $87.00.
The projected lean hog index is delayed from the source. Hog prices are not available on the Daily Direct Morning Hog Report because of packer submission issues. Pork cutouts total 183.06 loads with 161.63 loads of pork cuts and 21.43 loads of trim. Pork cutout values: up $2.05, $119.45.
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