GENERAL COMMENTS:
The livestock complex is off to a mixed start as the cattle contracts continue to trade mildly higher, but the hog complex can't seem to muster up enough support to turn its contracts higher. A single bid is currently on the table in Nebraska, but still no cattle have traded. July corn is down 11 cents per bushel and July soybean meal is down $2.30. The Dow Jones Industrial Average is up 516.74 points and NASDAQ is up 396.02 points.
LIVE CATTLE:
Again today, the live cattle contracts are mildly trading higher into Wednesday's noon hour. Following the slight technical regression late last week and through Monday's close, the market is no longer up against immediate resistance pressure and is able to trade slightly higher without fears of pressuring resistance thresholds. June live cattle is up $0.62 at $253.85, August live cattle is up $1.12 at $249.47 and October live cattle is up $1.45 at $244.67. There's a single bid on the table at $400 currently in Nebraska, but otherwise the market remains quiet in the cash sector and no cattle have traded yet. It's still assumed that the bulk of this week's trade will be delayed until Thursday or Friday. Asking prices have still not been established.
Boxed beef prices are lower: choice down $1.62 ($390.72) and select down $0.65 ($391.59) with a movement of 49 loads (41.40 loads of choice, 2.17 loads of select, zero loads of trim and 5.10 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are also trading higher into Monday's noon hour as the market is pleased to continue to absorb the added support from the live cattle contracts strength. May feeders are up $1.27 at $373.10, August feeders are up $2.05 at $374.35 and September feeders are up $2.37 at $372.75. The spot August contract is nearing the market's resistance point, which could cause traders to pull the contract back if greater support doesn't develop.
LEAN HOGS:
Meanwhile, the lean hog contracts are trading lower as the market simply can't seem to establish stable footing in the marketplace right now. Thankfully, today's lower trend is still within the market's current sideways trend, and traders haven't driven the spot June contract below the market's support plane, which is encouraging because the market's next support plane is significantly lower around $96.00. June lean hogs are down $1.25 at $102.27, August lean hogs are down $0.97 at $103.22 and October lean hogs are down $0.77 at $89.42. The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $0.82 with a weighted average price of $94.79, ranging from $90.00 to $95.00 on 4,075 head and a five-day rolling average of $94.75. Pork cutouts total 174.94 loads with 142.02 loads of pork cuts and 32.92 loads of trim. Pork cutout values: up $0.67, $96.64.
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