Hogs futures are whipsawing up and down with triple-digit gains today nearly eliminating the losses of yesterday. August futures are trending higher while later contracts are sideways. Corn futures are defying the WASDE report of yesterday with September corn up 8 cents. The Dow is 155 points higher while the NASDAQ is up 30 points.
Live cattle are showing gains with optimism that cash cattle will trade no less the steady and hopefully higher. Business is again pushed back to the last day of the week as feedlots have been holding tight to their offers. Futures continue to maintain a steady uptrend as there is hope for better cattle prices. Boxed beef cut-outs are mixed with choice up $0.11 per cwt and select down $0.17 per cwt. Movement is light at 58 loads (26 loads of choice cuts, 11 loads of select cuts, 9 loads of trimmings, and 11 loads of ground beef.
Feeder cattle futures could not extend the gains of yesterday eliminating what was gained the past two days. The overall price uptrend could be threatened moving futures into a sideways pattern again. There is no spillover taking place from stronger live cattle futures as the market corrects from an overbought situation. Futures will post gains for the week even though some positions are being liquidated.
Futures are reversing the losses of yesterday for October and later contracts. August posts triple-digit gains, but will likely not exceed the losses from Thursday. Front-month July is moving the cash settlement with the end of trading on Monday and price down $0.37. Cash prices are lower on the National Daily Direct morning cash report. The weighted average price is $1.49 lower at $66.34 per cwt with a price range of $56.00 to $70.00. The National Pork Plant report recorded 187 loads selling with 176 loads of cuts and 11 loads of trim/process. Pork carcass values fell $1.81 per cwt at $70.36 per cwt. The lean hog index for 7.10 is $70.65 down $0.12 with a projected 2-day index of $70.73, up $0.08.
Robin Schmahl can be reached at: firstname.lastname@example.org
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