Advice Alert: We advise livestock producers to cover the remaining half of August and September for soymeal needs in the cash market. We also advise covering corn-for-feed for the remaining half of needs in September and October in the cash market. For soymeal, you now have full coverage in cash through September, with half of your needs for October, November and December covered in cash. For corn, you now have all needs through October covered in the cash market.
Hogs
Price action: August lean hogs rose 10 cents to $108.875, nearer the daily low and hit a five-week high early on.
Fundamental analysis: The lean hog futures market today saw some mild profit-taking pressure early on, following recent gains. Record high live and feeder cattle futures prices scored this week are a bullish element for the hog futures market that helped to erase today’s mild early losses in August hog futures by the close.
The latest CME lean hog index is down another 43 cents to $109.56. Thursday’s projected cash index price is up 4 cents to $109.60. The national direct five-day rolling average cash hog price quote today is $112.49. The noon report today showed pork cutout value fell $2.05 to $116.07, led by losses in hams. Movement at midday was strong at 240.52 loads.
Technical analysis: Lean hog futures bulls have the firm overall near-term technical advantage. Bulls have restarted a price uptrend on the daily bar chart. The next upside price objective for the hog bulls is to close August prices above solid chart resistance at $112.00. The next downside price objective for the bears is closing prices below solid technical support at $105.00. First resistance is seen at today’s high of $109.60 and then at $111.00. First support is seen at this week’s low of $107.325 and then at last week’s low of $106.20.
What to do: Get current with feed coverage.
Hedgers: You are carrying all production risk in the cash market.
Feed needs: NEW ADVICE: Cover the remaining half of August and September for soymeal needs in the cash market. We also advise covering corn-for-feed for the remaining half of needs in September and October in the cash market. For soymeal, you now have full coverage in cash through September, with half of your needs for October, November and December covered in cash. For corn, you now have all needs through October covered in the cash market.
Advice alert: We advise livestock producers to cover the remaining half of August and September for soymeal needs in the cash market. We also advise covering corn-for-feed for the remaining half of needs in September and October in the cash market. For soymeal, you now have full coverage in cash through September, with half of your needs for October, November and December covered in cash. For corn, you now have all needs through October covered in the cash market.
Cattle
Price action: August live cattle rose $2.025 to $236.30, near the session high and hit another contract and record high today. August feeder cattle rose $3.975 to $345.025, near the daily high and hit a contract/record high.
Fundamental analysis: Strong cash and beef market fundamentals are combining with bullish technicals to power live and feeder cattle futures still higher. Live cattle futures remain at a discount to the cash cattle market, which is also inviting speculator buying interest in futures markets.
More light cash cattle trading has been reported by USDA at mid-week, with the average price being $240.00. Beef packers cutting in the red at present may prompt the packers to be less aggressive on bidding for supplies when more active trade likely commences Thursday and/or Friday.
The noon report showed wholesale boxed beef values soared again today, with Choice-grade up $4.04 to $373.98, while Select gained $4.87 to $350.81. Movement at midday was 54 loads. The Choice-Select spread is presently $23.17.
Technical analysis: Live and feeder cattle futures bulls have the solid overall near-term technical advantage. The next upside price objective for the live cattle bulls is to close August futures above resistance at $240.00. The next downside technical objective for the bears is closing prices below solid technical support at $227.50. First resistance is seen at today’s contract high of $236.50 and then at $237.50. First support is seen at today’s low of $233.175 and then at Tuesday’s low of $231.15.
The next upside price objective for the feeder bulls is to close August futures prices above technical resistance at $350.00. The next downside price objective for the bears is to close prices below solid technical support at $330.00. First resistance is seen at today’s contract high of $345.35 and then at $347.00. First support is seen at today’s low of $339.50 and then at Tuesday’s low of $335.725.
What to do: Get current with feed coverage. Carry all production risk in the cash market for now.
Hedgers: Carry all production risk in the cash market for now.
Feed needs: NEW ADVICE: Cover the remaining half of August and September for soymeal needs in the cash market. We also advise covering corn-for-feed for the remaining half of needs in September and October in the cash market. For soymeal, you now have full coverage in cash through September, with half of your needs for October, November and December covered in cash. For corn, you now have all needs through October covered in the cash market.