Live cattle have so far put in an outside day making a new high for the uptrend. Cash cattle trading higher last week did not provide carryover support to start the week. Feeder cattle are not showing the same pattern with futures declining for the second day. The Cattle on Feed reports is at the end of the week, but it is too early to have an influence on today’s market.
July hogs go off the board today with August taking over as front month. July and August are lower while later contracts post gains.
Corn futures are under pressure today with September down 8 3/4 cents. The DOW is down 28 points while the NASDAQ is down 2 points.
Live cattle continue to hold an uptrend, but are struggling to do so. The higher cash trade of last week had been factored in the market leaving little to get too excited aver. Futures continue to show some optimism with prices increasing through the end of the year. This is no expectation for cash cattle trade early in the week as showlists have been distributed.
So far, cash is called steady to higher bids at $112 to $113 with dressed bids at $184 to $186. Offers are $114 with dressed at $188.
Boxed beef cutouts were mixed with choice up $0.68 per cwt and select down $0.13 per cwt. Movement is posted at 74 loads (31 loads of choice cuts, 20 loads of select cuts, 5 loads of trimming, and 18 loads of ground beef).
Feeder cattle futures began the week with some weakness as double-digit losses dominate the day. There was some initial volatility during the first hour of trading, but contracts have since traded in a tight sideways pattern. Futures look to be tipping downward in trend, but may find some support from the live cattle complex.
Hog futures are showing some spread trading with selling in August and buying in later months. July goes off the board today looking to settle right around $70.80. Gains increase in each subsequent month with February showed the greatest gain of triple-digits.
Cash prices are lower on the National Direct morning cash report. The weighted average price was $66.44, down $1.64 with a range of $66.00 to $69.00.
The National Pork Plant report posted 135 loads traded. Pork carcass values declined $0.56 at $71.09 per cwt. The lean hog index for 7/11 is $70.73, up $0.08 with a projected two-day index of $70.73, unchanged.