DTN Midday Livestock Comments 07/21 11:41

DTN Midday Livestock Comments 07/21 11:41 Choppy Lower Trade Sums Up Thursday's Livestock Market Heading into Thursday afternoon, it's unlikely that the market has a change of heart and begins to trade higher as traders sit on the sidelines waiting to see what Friday's USDA reports bring. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex was blessed with a supportive export report Thursday morning, but that hasn't helped the contracts trade higher throughout the day. There's been a little more cash cattle trade develop in the South at $136, which is $0.50 to $1.00 lower than last week's weighted average. December corn is down 5 1/4 cents per bushel and December soybean meal is down $2.10. The Dow Jones Industrial Average is up 42.03 points. LIVE CATTLE: Even with the market's impressive export report to start the day off, the live cattle market is traipsing lower into Thursday's afternoon. With boxed beef prices weighing on the day's morale, and more cash cattle trade trending slightly lower, it's a sluggish down market for the live cattle complex this Thursday. August live cattle are down $0.02 at $135.72, October live cattle are down $0.65 at $140.67 and December live cattle are down $0.75 at $146.07. There's been some light trade developing in both Kansas and Texas for $136; which is $0.50 to $1.00 lower than last week's weighted averages. Thus far throughout the week, Southern live trade has been marked at $136, roughly $0.50 to $1 lower than last week's weighted average. Dressed deals in the North have been marked at mostly $227, $2 lower than last week's weighted averages. Beef net sales of 23,800 mt for 2022 were up noticeably from the previous week and up 97% from the prior four-week average. The three largest buyers were South Korea (7,700 mt), Japan (5,800 mt) and China (3,100 mt). Boxed beef prices are lower: choice down $2.02 ($268.51) and select down $1.78 ($240.47) with a movement of 53 loads (28.02 loads of choice, 11.45 loads of select, zero loads of trim and 13.26 loads of ground beef). FEEDER CATTLE: The feeder cattle contracts are working their way lower through Thursday's market as traders simply seem uninterested in supporting the market ahead of Friday's big day of USDA reports. August feeder cattle are down $0.62 at $177.20, September feeders are down $0.67 at $180.30 and October feeders are down $0.47 at $183.27. It's likely that the market keeps with this sluggish/slightly lower tone, as not only are traders on the sidelines of the market, but scorching hot weather is limiting the numbers of sale receipts in some Southern states of calves. LEAN HOGS: Even though the cash hog market is trending slightly lower in Thursday's market, the nearly lean hog contracts are keeping with their rally thanks to the ongoing support of strong pork demand. August lean hogs are up $1.80 at $116.67, October lean hogs are up $0.22 at $96.25 and December lean hogs are down $0.27 at $86.57. It was interesting to see China an active buyer in Thursday morning's export report as their hog market has increased production and as US pork remains a rather expensive option, but thankfully this bodes well for hog producers as demand is demand no matter where it comes from! The projected lean hog index for July 20 is up $0.67 at $117.04, and the actual index for July 19 is up $0.46 at $116.37. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.27 with a weighted average of $121.04, ranging from $112.50 to $134.00 and on 6,519 head with a five-day rolling average of $119.59. Pork cutouts total 148.61 loads with 128.58 loads of pork cuts and 20.03 loads of trim. Pork cutout values: up $2.20, $126.57. Pork net sales of 20,600 mt for 2022 were up 13% from the previous week, but down 23% from the prior four-week average. The three largest buyers were Mexico (10,500 mt), Japan (2,600 mt) and China (2,500 mt). ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2022 DTN, LLC. All rights reserved.