DTN Midday Livestock Comments 07/15 12:21
The Market Exhibits Little Fanfare
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.
By Robin Schmahl
DTN Contributing Analyst
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,
Robin Schmahl can be reached at: email@example.com
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