Friday Midday Livestock Market Update - Cattle Continue to Plumet Lower

GENERAL COMMENTS:

The livestock contracts are trading fully lower into Friday's noon hour as cattle traders weigh fears, waiting for the monthly Cattle on Feed report to be released. The lean hog complex simply can't find enough support. No new cash cattle trade has developed. July corn is up 2 cents per bushel and July soybean meal is up $3.00. The Dow Jones Industrial Average is up 380.98 points and NASDAQ is up 139.62 points.

LIVE CATTLE:

With the anticipation of a bearish Cattle on Feed report looming heavily over the complex -- it comes as no real surprise that the live cattle contracts are trading lower into Friday's noon hour. June live cattle are down $0.65 at $248.50, August live cattle are down $1.42 at $237.85 and October live cattle are down $2.30 at $228.65. No new bids are currently on the table in the cash market and it looks like the bulk of this week's trade is essentially done with, although a little more clean-up trade could happen after the Cattle on Feed report is released.

So far this week, Southern live deals have been done at mostly $260, steady/weak with last week's weighted average. Northern dressed deals have had a fairly wide range of $408 to $415, mostly $410 to $412, $1 lower to $1 higher than the previous week's weighted average, basis Nebraska.

Boxed beef prices are mixed: choice down $1.59 ($389.89) and select up $0.64 ($386.29) with a movement of 53 loads (42.05 loads of choice, 1.95 loads of select, 3.61 loads of trim and 5.71 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex can't stand it! Walking on egg shells and feeling like the oxygen is slowly being pulled from the air that traders breathe, the feeder cattle contracts are enduring yet another bloodbath Friday as everyone waits to see what Friday's Cattle on Feed report is going to unveil. August feeders are down $10.60 at $345.00, September feeders are down $10.42 at $243.95 and October feeders are down $10.12 at $339.50.

LEAN HOGS:

And although the lean hog complex isn't feeling the same exact pressure the cattle contracts are, it too is lower as traders simply can't find enough support in the market to justify pushing the contracts higher. June lean hogs are up $0.12 at $95.25, July lean hogs are down $0.52 at $99.50 and August lean hogs are down $0.90 at $99.32. Yes, midday pork cutout values are a tick higher, but at this point in the week that doesn't mean much to traders ahead of a long weekend.

The projected CME Lean Hog Index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $92.79, ranging from $91.50 to $95.00 on 512 head and a five-day rolling average of $93.57. Pork cutouts totaled 246.48 loads with 96.64 loads of pork cuts and 23.24 loads of trim. Pork cutout values: up $1.00, $96.64.