Livestock futures are mixed with moderate to firm pressure is seen in all cattle trade. Lean hog futures have shifted higher, although traders are backing away from session highs as more volume moves into the complex. Corn prices are lower in light trade Tuesday. July corn futures are 2 cents lower. Stock markets are mixed in light trade. The Dow Jones is 232 points higher while Nasdaq is down 7 points.
Moderate to strong pressure has quickly stepped back into the market late morning Tuesday. This may add some additional weakness to the complex with front month August futures posting $1 per cwt losses in limited trade. The back away from recent market highs has continued to spark some additional market movement through the end of the trading session. Cash cattle activity is starting to develop with a few bids seen through the morning. Bids are seen at $108 to $110 live basis and $177 dressed basis. This is still well below asking prices of $115 live and $183 and higher dressed. Active trade may not be seen until midweek or later. Boxed Beef cut-outs at midday are mixed, $0.30 higher (select) and up $0.31 per cwt (choice) with light movement of 42 total loads reported (23 loads of choice cuts, 14 loads of select cuts, no loads of trimmings, 5 loads of ground beef).
Limited activity is seen through the complex with nearby contracts holding losses of 60 to 95 cents per cwt. The inability to bring additional buyers back into the market is causing some additional selling pressure to develop through the entire complex. There is growing volatility in the market, which could lead to late-day pressure in the complex.
Lean hog futures have quickly pulled back from session highs as triple digit gains were seen through morning trade. But as midday has developed, there is increased overall weakness through the complex which could back away from recent market support. August futures are holding 42 cent losses, while other nearby contracts are 12 to 40 cents higher. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.77 at $65.80 per cwt with the range from $63.00 to $68.00 on 7,827 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.09 at $66.46 per cwt with the range from $64.50 to $68.00 on 3,495 head reported sold. The National Pork Plant Report posted 168 loads selling with carcass values falling $2.06 per cwt. Lean hog index for 7/20 is at $76.90 down 0.93 with a projected two-day index of $76.17, down 0.73.
Rick Kment can be reached at firstname.lastname@example.org
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