Today is the last trading day for June live cattle with futures making another sharp triple-digit gain resulting in more than a $5.00 increase over the past week as the market converges to cash. Other futures post minor gains while feeder cattle post sharp gains after the USDA Acreage report.
Front-month July hogs are under pressure while later contracts post double-digit gains shrugging off some of the bearish implications of the Hogs and Pigs report released yesterday. Spread trading has taken over the hog complex.
Corn fell on higher planted acreage with futures down 22 cents. The Dow is up 54 points while the NASDAQ is up 20 points.
Cash cattle is pushing the limits again with trading confined mainly to Friday. Lower boxed beef prices this week have not provided the incentive for buyers to become aggressive.
June goes of the board today and is showing triple-digit gains. It has been gaining every day this week as price converges to underlying cash. This cannot be said for the rest of the complex as prices are mixed.
Boxed beef cut-outs are mixed at midday with choice cuts up $0.89 per cwt at $219.92 with select cuts down $0.83 per cwt at $196.07. Total load count is moderate at 76 reported (39 loads of choice cuts, 27 loads of select cuts, no loads of trimmings, and 10 loads of ground beef.
Feeder cattle futures have done an about face at mid-morning with contracts flipping from slightly negative to surge to triple-digit gains with August leading the charge posting over a $3.00 gain. This gain correlates with the release of the grain acreage report, which showed corn acres being increasing to more than last year. Cheaper corn could spur more interest in feeder cattle.
July lean hogs are down $0.65 while later contracts post triple-digit gains. Spread trading is taking place as a reaction to the bearish implications of the Hogs and Pigs report released yesterday. Buyers stepped into the market after futures held trend line support.
The National Daily Direct morning cash report has the weighted average price $0.98 lower at $68.00 with a range of $61.00 to $70.00. The National Pork Plant report posted 193 loads sold. Pork carcass values declined $0.72 per cwt at a price of $72.17 per cwt. The lean hog index for 6/26 is $77.26, down $0.65 with a projected two-day index of $7605, down $1.21.