Even with it being a shortened holiday week, some of the livestock complex seems interested in trading higher.
Livestock contracts are trading here and there, without a major consensus of where the market should align its trajectory for the week at. Throughout the day the live cattle and lean hog contracts have toyed with the idea of trading higher, but the feeder cattle contracts are adamant about bowing lower and continue to scale back. July corn is up 6 1/2 cents per bushel and July soybean meal is down $0.40. The Dow Jones Industrial Average is up 446.29 points and NASDAQ is up 90.88 points.
Despite the ginormous backlog of cattle continuing to be an issue for the industry, the live cattle complex is trading higher into the noon hour. August live cattle are up $0.32 at $96.35, October live cattle are up $0.40 at $99.87 and December live cattle are up $0.52 at $103.60. The week is anticipated to be mostly quiet as slaughter will mostly likely be smaller than last week’s kill with the holiday weekend. New showlists appear to be higher in Kansas, somewhat lower in Nebraska/Colorado, and lower in Texas. Bids and asking prices have not yet been established throughout the countryside.
USDA National Weekly Direct Slaughter Cattle – Negotiated Purchases shared that packers bought 92,334 head last week. Of that 89,875 head are committed for delivery in the next two weeks while the remaining 2,459 head will be delivered in the next 15 to 30 days.
Boxed beef prices are up: choice up $2.03 ($209.20) and select up $1.49 ($200.34) with a movement of 79 loads (32.56 loads of choice, 12.67 loads of select, 8.04 loads of tri and 25.68 loads of ground beef).
Feeder cattle contracts are far from interested in trading higher as the complex has traded lower throughout the entire morning. After last week’s push to see stronger prices throughout the countryside, the complex will most likely coast through this week without too much excitement. Seeing that some cow/calf country is getting rain is a positive win for producers as many worry that hay prices are going to be up from last year’s prices. August live cattle are down $0.60 at $132.00, September live cattle are down $0.72 at $133.05 and October live cattle are down $0.72 at $134.00.
Surprisingly enough the lean hogs complex is supporting some nearby excitement Monday morning. July lean hog are up $0.15 at $45.42, August lean hogs are up $0.82 at $48.95 and October lean hogs are up $0.65 at $47.65. Even though slaughter is anticipated to be slightly lower this week with the 4th of July weekend, packers were aggressive Monday morning and upped cash prices nearly $0.50 — but with pork prices showing strength throughout different times of last week and up $3.58 at midday Monday, packers have incentive to keep working.
The projected lean hog index is unavailable due to packer submission problems. Hog prices are higher on the National Direct Morning Hog Report, up $0.41 with a weighted average of $28.94, ranging from $24.00 to $30.13 on 4,907 head and a five-day rolling average of $28.67. Pork cutouts total 222.02 loads with 192.19 loads of pork cuts and 29.83 loads of trim. Pork cutout values: up $3.58, $69.53.