GENERAL COMMENTS:
The livestock complex is again trading mixed into midday Friday as the cattle contracts have found plenty of support. However, the lean hog complex remains in the other boat as traders simply aren't comfortable with the market at this time. No new cash cattle trade has developed, and it's looking like the bulk of this week's trade is done with. July corn is up 5 cents per bushel and July soybean meal is down $0.60. The Dow Jones Industrial Average is up 5.46 points and the NASDAQ is up 280.43 points.
LIVE CATTLE:
Although it looks like the vast majority of this week's trade in the fed cash cattle market is complete, traders are allowing the contracts to trade slightly higher and maintain a sideways chop in the upper echelon of its new trading range. June live cattle are up $0.85 at $254.85, August live cattle are up $1.45 at $250.10 and October live cattle are up $1.57 at $245.05. So far this week, trade has had a fairly wide range, with Northern dressed trade done at $392 to $405, mostly $400, $14 higher than the previous week's weighted averages. Southern live deals have had a range of $250 to mostly $255 to $256, $9 to $10 higher than the prior week's weighted averages.
Boxed beef prices are lower: choice down $0.24 ($389.28) and select down $1.65 ($386.52) with a movement of 33 loads (23.42 loads of choice, 2.57 loads of select, zero loads of trim and 6.50 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are also trading higher as traders are thankful to see the live cattle contracts trading higher, which is enough support this morning to justify turning the feeder cattle contracts higher. May feeders are up $2.22 at $374.87, August feeders are up $2.45 at $375.90 and September feeders are up $2.50 at $374.25. So long as adequate support continues to funnel into the feeder cattle complex from the live cattle market, the market should be able to maintain its upward trend through the afternoon's close.
LEAN HOGS:
Meanwhile, the lean hog complex is trading lower as traders can't seem to find the support and stability they need. Yes, midday pork cutout values are higher, but traders could have used that support earlier in the week if it were going to amount to something sizeable and genuinely supportive. June lean hogs are down $1.00 at $101.27, July lean hogs are down $1.65 at $103.40 and August lean hogs are down $1.52 at $103.92.
The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.92 with a weighted average price of $92.51, ranging from $90.00 to $94.00 on 850 head and a five-day rolling average of $92.26. Pork cutouts total 194.91 loads with 171.11 loads of pork cuts and 23.80 loads of trim. Pork cutout values: up $3.49, $100.25.
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