GENERAL COMMENTS:
The livestock complex is again trading mixed into Tuesday's noon hour as the cattle contracts modestly rally into the afternoon, while the lean hog contracts continue to struggle. Still no cash cattle trade has developed. July corn is down 2 1/4 cents per bushel and July soybean meal is down $2.50. The Dow Jones Industrial Average is down 171.96 points and NASDAQ is down 244.97 points.
LIVE CATTLE:
The live cattle complex is trading mostly higher into Tuesday's noon hour, as the contracts are hopeful that fundamental support will firmly develop later in the week, but are pleased with the slight uptick in boxed beef prices to start the week off. June live cattle are up $0.90 at $254.27, August live cattle are down $0.17 at $246.02 and October live cattle are up $0.02 at $238.97. You'll notice a touch of hesitancy in the spot August contract, which likely stems from the contract being near resistance level. More than anything, the market is hopeful that fundamental support will develop from the cash market. However, it is also aware that as packers buy for a holiday-shortened weekend and with a Cattle on Feed report set to be released on Friday, the cash market may not be as fruitful as it has been in recent weeks.
Boxed beef prices are higher: choice up $3.61 ($395.75) and select up $3.65 ($393.88) with a movement of 43 loads (27.61 loads of choice, 6.43 loads of select, zero loads of trim and 9.17 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is also enjoying a modest rally into Tuesday's noon hour as traders are willing to let the contracts trade higher so long as the live cattle contracts continue to do so. August feeders are up $3.02 at $361.87, September feeders are up $2.65 at $358.85 and October feeders are up $2.55 at $355.65. And so long as the live cattle contracts continue to rally through the afternoon, the feeder cattle contracts will likely do so as well.
LEAN HOGS:
The lean hog contracts are trading lower into Tuesday's noon hour as the market continues to struggle to find the support it needs to establish some technical momentum. June lean hogs are down $0.32 at $98.20, July lean hogs are down $0.30 at $102.45 and August lean hogs are down $0.77 at $102.45. The biggest strain on the pork cutout values this morning was the $3.37 decline in the loin. The projected lean hog index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $94.35, ranging from $87.00 to $95.00 on 370 head and a five-day rolling average of $94.15. Pork cutouts total 261.58 loads with 226.71 loads of pork cuts and 34.86 loads of trim. Pork cutout values: down $0.48, $97.88.
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