Strong losses have quickly redeveloped through the lean hog complex Tuesday morning. The firm pressure in cash hog values has continued to add to the overall market pressure in the complex. Live cattle futures have remained mixed through most of the morning, but midday trade is pulling away from early morning gains. Corn prices are higher in light trade Tuesday. July corn futures are 6 cents higher. Stock markets are higher in light trade. The Dow Jones is 59 points higher while Nasdaq is up 42 points.
Narrow trading ranges are seen midday Tuesday with the focus on strong gains in grain and feed markets early in the session. August futures are holding losses of 32 cents per cwt, while the rest of the complex is stuck between 10 cents lower and 10 cents higher in limited activity. Limited market ranges are expected to be seen through the rest of the session, keeping markets likely hovering in a narrow range. Cash cattle interest remains quiet with bids and asking prices still hard to find in all areas of the country. This may add some additional uncertainty to the market following the lack of follow-through support in futures prices and firm beef values. Active trade is not expected until the last half of the week. Boxed Beef cut-outs at midday are higher, $1.60 Higher (select) and up $1.24 per cwt (choice) with light movement of 81 total loads reported (57 loads of choice cuts, 16 loads of select cuts, no loads of trimmings, 8 loads of ground beef).
Light to moderate pressure is slowly trickling into feeder cattle futures. This is moving prices 10 to 45 cents per cwt lower as limited interest is seen in live cattle trade following the strong market gains seen Monday. August futures are leading the complex lower with a 45 cent per cwt loss, as prices have dipped below $152 per cwt once again. The uncertainty of overall long term beef demand as well as firm buyer interest in grain trade is eroding trade in all feeder cattle future.
Moderate to strong pressure is seen through the lean hog complex late Tuesday morning with October through April futures holding triple-digit losses. The combination with Monday losses has reactivated concerns that additional long-term pressure will develop through the entire complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $1.26 at $71.50 per cwt with the range from $70.00 to $72.50 on 6,623 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.25 at $71.47 per cwt with the range from $70.00 to $72.50 on 4,353 head reported sold. The National Pork Plant Report posted 220 loads selling with carcass values gaining $1.15 per cwt. Lean hog index for 7/13 is at $80.34 down 0.57 with a projected two-day index of $79.69, down 0.65.
Rick Kment can be reached at email@example.com
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