DTN Midday Livestock Comments 07/22 11:29

DTN Midday Livestock Comments 07/22 11:29 Livestock Turn Higher Come Friday In anticipation of bullish USDA reports coming Friday afternoon, the livestock complex has shot higher. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is running into Friday's afternoon fully higher as the market absorbs ample support from traders and the likelihood of bullish USDA reports coming Friday afternoon. From the latest Cold Storage report to the midyear Cattle Inventory and monthly Cattle on Feed reports -- Friday afternoon will have everyone staring at their computer screens. December corn is down 2 3/4 cents per bushel and December soybean meal is down $0.70. The Dow Jones Industrial Average is down 62.66 points. LIVE CATTLE: The live cattle market is higher and is rallying up to the market's average one-month high for many of the contracts. August live cattle are up $1.27 at $137.00, October live cattle are up $1.72 at $142.70, and December live cattle are up $1.50 at $147.85. The market's excitement likely stems from the anticipated bullish USDA reports that are going to be unveiled Friday afternoon -- the monthly Cattle on Feed report and the midyear Cattle Inventory report. The cash cattle market hasn't seen any renewed interest thus far and it's most likely that the week's business is done with. 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. Boxed beef prices are higher: choice up $0.45 ($268.21) and select up $1.91 ($242.44) with a movement of 53 loads (28.08 loads of choice, 5.69 loads of select, 11.97 loads of trim and 7.05 loads of ground beef). FEEDER CATTLE: The feeder cattle contracts are higher Friday afternoon as the market is poised for Friday afternoon's reports. Both the Cattle on Feed and Cattle Inventory reports are expected to bode well for the cattle complex, and as traders push the feeder cattle contracts close to the market's recent high, everyone is watching the minutes pass until the reports become available. Friday afternoon's trade will likely keep with its strong tone through closing unless the corn market has a change of heart and for some reason shoots higher. It's not Friday's market that will likely see the benefits of these reports, but mostly Monday's market if they are indeed as supportive as assumed. August feeders are up $1.90 at $180.17, September feeders are up $2.27 at $183.57 and October feeders are up $2.17 at $186.40. LEAN HOGS: The lean hog complex isn't going to sit idle ahead of the week's close and miss an opportunity to capture a modest rally ahead of the Friday's last bell. August lean hogs are up $1.80 at $118.10, October lean hogs are up $0.32 at $96.10 and December lean hogs are up $0.22 at $86.45. Aside from the livestock complex's strong underlying tones, it's helping that pork cutout values are trending higher into the afternoon. It's key that packers see continued strong pork demand amid such limited supplies of market-ready hogs as that will be key to keeping packers interested in the cash market. The projected lean hog index for July 21 is up $1.12 at $118.16, and the actual index for July 20 is up $0.67 at $117.04. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $3.05 with a weighted average of $117.99, ranging from $113.50 to $134.00 on 3,809 head and a five-day rolling average of $119.82. Pork cutouts total 153.02 loads with 138.59 loads of pork cuts and 14.43 loads of trim. Pork cutout values: up $3.02, $126.92. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2022 DTN, LLC. All rights reserved.