DTN Midday Livestock Comments 07/14 12:29
Livestock Complex Trades With Caution Heading Into Afternoon
Unlike Monday, the livestock complex is short of support as all three
contracts have fought some resistance throughout the morning's early trade.
DTN Livestock Analyst
The livestock complex hasn't fully decided if Monday's rally is where the
direction needs to lean again Tuesday. The lean hog complex could trade higher
this afternoon as pork cutout values are slightly higher, and cash hogs are
trading modestly higher as well. Meanwhile, the cattle contracts are sitting
idly -- letting time pass as certainty in where prices should trade this week
is slim. December corn is steady and December soybean meal is up $2.00. The Dow
Jones Industrial Average is up 291.76 points and NASDAQ is up 0.88 points.
Live cattle contracts are in the same boat as feeder cattle -- another day,
but prices are trending lower. August live cattle are down $0.77 at $98.87,
October live cattle are down $1.00 at $103.20 and December live cattle are down
$0.92 at $107.42. Feedlots across the U.S. are praying these hot summer
temperatures end soon as immense stress is put on cattle in feedlots when
temperatures near 100 degrees. So far cash cattle trade has continued to be
mostly quiet with bids still hard to come by. A light trade did happen in parts
of the South at $95 for live cattle -- fully steady with last week's business.
Asking prices are firm at $100-plus in the South and $162-plus in the North.
Consigned to Wednesday's Fed Cattle Exchange are 1,224 head of cattle. Most
of the lots are from Kansas with an offering of 1-9-day delivery, or 1-17-day
delivery, and two lots are from Texas.
Boxed beef prices are lower: choice down $2.47 ($200.79) and select down
$0.10 ($191.78) with a movement of 91 loads (42.82 loads of choice, 15.17 loads
of select, 8.14 loads of trim and 25.10 loads of ground beef).
Feeling tremendous pressure at the $138.00 threshold, nearby feeder cattle
contracts have backed away from Monday's rally and the rest of the complex has
softened even more than nearby contracts. August feeders are down $0.02 at
$137.02, September feeders are down $0.45 at $137.62 and October feeders are
down $0.47 at $139.05. As the market remains slim for interested traders, the
market could easily swing either way as only a minimal amount of trade can
affect the market greatly at this point.
The lean hog complex has fought the same resistance that's developed in the
cattle contracts but thankfully with the support from higher cash prices and a
higher cutout value at midday prices are toying with the idea of trading
higher. Heading into the afternoon the complex is split, trading mixed in
nearby contracts and mostly higher in deferred. August feeders are down $0.27
at $51.00, October feeders are up $0.05 at $50.40 and December feeders are down
$0.12 at $51.75.
The projected lean hog index for 7/13/2020 is up $0.44 at $46.08, and the
actual index for 7/10/2020 is up $0.31 at $45.64. Hog prices are higher on the
National Direct Morning Hog Report, up $0.27 with a weighted average of $30.72,
ranging from $29.00 to $35.00 on 3,311 head and a five-day rolling average of
$29.59. Pork cutouts total 227.78 loads with 210.81 loads of pork cuts and
16.97 loads of trim. Pork cutout values: up $0.58, $68.10.
ShayLe Stewart can be reached firstname.lastname@example.org
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