The cattle complex initially showed divergent prices with feeder cattle higher and live cattle lower. That has changed with lives cattle moving to slightly higher. Futures are again showing limited volatility so far today. Cattle trade is virtually non-existent again with bids and offers remaining apart. Traders are keeping futures close until cash trading develops providing some direction.
Hogs reversed today posting triple-digit losses in all contracts except front-month July. This may be moving hog futures into a wild and volatile sideways trading pattern.
Corn discounted the bearish implications of the World Agricultural Supply and Demand report with price up a penny. The DOW is up 199 points with the NASDAQ up 17 points.
It is almost as if cattle market were waiting to see what the grain prices were going to do on the World Agricultural Supply and Demand report as not much price movement was taking place. After the report, cattle futures began to exhibit a bit more strength taking live cattle from losses to gains. However, price swings remain limited.
Cattle traded still has not be tested with bids and offers about $4.00 apart. This gap will narrow, but most activity may wait until tomorrow. Bids in the South are running around $110 with asking prices at $114 while the North is showing bids at $180 with offers at $184.
Boxed beef cut-outs are lower with choice down $0.24 per cwt and select down $0.03 per cwt. Movement has totaled 90 loads with 30 loads of choice cuts, 19 loads of select cuts; 6 loads of trimmings, and 12 loads of ground beef.
Feeders have been carrying the torch today, but leading the cattle complex higher. However, gains have been confined to double-digits, but this is keeping the uptrend intact. New highs for keep traders interested in being aggressive buyers of futures. Feeder cattle trade in Oklahoma City jumped $3.00 over the past week indicating the seasonal rise in price is moving back on track.
Hogs are taking a beating as profits are being taken after a significant rise of futures over the past two days. Triple-digit losses are seen in most contracts with the exception of front-month July which ceases trading on Monday.
Cash prices are higher on the National Daily Direct report. The weighted average price is $0.31 higher at $67.85 per cwt. With a range of $56.00 to $71.00 per cwt with 4,813 reported sold.
The National Pork Plant report posted 185 loads selling (175 loads of cuts and 10 loads of trim/process pork). Carcass values declined $1.40 per cwt to $70.20 per cwt. The lean hog index for July 9th is $70.77, down $0.48 with a projected 2-day index of $70.65, down $0.12.