Cattle futures are under pressure again. Weakness is led by feeder cattle posting double-digit losses. After opening near steady from yesterday, prices declined. Futures appear to be tipping and may be trending lower. Feeder cattle futures left a chart gap on the opening.
Hogs are showing a strong day posting triple-digit gains. Spreading of the front-mouth to later months ran its course with all contracts up nearly the same. Hog futures gapped higher.
Corn in 2 3/4 cents higher. The Dow is 45 points lower while the NASDAQ is down 3 points.
Live cattle are lower as it seems there is concern the cattle on feed report may not be supportive. Weakness so far this week may dim the prospect for higher cash trade. Futures continue to correct from an overbought condition and may be turning the trend lower. Cash business is still at a standoff and hot weather may limit some of the business.
Boxed Beef cut-outs were lower at midday with choice down $0.49 per cwt and select down $0.79 per cwt. Trading activity has been brisk with 137 loads reported (53 loads of choice cuts, 32 loads of select cuts, 27 loads of trimmings, and 24 loads of ground beef.
Feeder cattle are putting pressure on the cattle complex posting triple-digit losses early after gapping lower at the opening in October and later contracts. August did not gap lower and is actually showing only minor losses at midday.
Futures pushed through price support, but were able to regain some of the loss bring contract back above technical support. The upcoming cattle of feed report is having a significant impact on trading this week.
Hog futures are on a roll with the higher trend intact. Spread trading has run its course with August posting greater gains than the rest of the complex. August is trying to regain some of the losses over the past three days. October and later contract gapped higher at the open as optimism grows for greater pork demand from China and elsewhere later this year.
Price was down a penny on the National Daily Direct report. The weighted average price is $69.32 with a range of $57.00 to $73.00 on 6,076 reported sold.
The National Pork Plant report posted 174 loads selling with 155 loads of pork cuts and 19 loads of trim/process pork. Carcass values added $1.26 per cwt at $77.06. The lean hog index for 7/15 was $70.62, down $0.11 with the projected two-day index of $70.77, up $0.17.