DTN Midday Livestock Comments 06/06 11:42
Stronger Tones Dominate the Livestock Complex Tuesday
Heading into Tuesday afternoon the livestock complex is trading fully higher
as fundamental support continues to outweigh pressure from corn.
DTN Livestock Analyst
The livestock complex is rallying yet again as traders see the momentum in
the market's fundamentals. No cash cattle trade has been reported and no
substantial business is expected to develop until the second half of the week.
July corn is up 3 1/4 cents per bushel and July soybean meal is down $4.30. The
Dow Jones Industrial Average is down 33.43 points.
The live cattle market is trading $1.00 to $2.00 higher into Tuesday's noon
hour as excellent beef demand and the anticipation that feedlots are going to
price cattle higher again this week helps fuel trader excitement. It's truly
remarkable what beef prices have been able to accomplish here as of late as,
seasonally, we'd expect that prices would be regressing, but consumers continue
to yearn for more product, which is keeping packers engaged in the cash market.
No cash cattle business has been reported at this point and it's likely that no
trade develops until Thursday. Asking prices remain elusive as feedlots know
that they sit in the driver's seat of this market. June live cattle are up
$2.47 at $179.62, August live cattle are up $1.95 at $175.22 and October live
cattle are up $1.75 at $178.07.
Boxed beef prices are higher: choice up $5.32 ($319.51) and select up $2.46
($299.19) with a movement of 54 loads (29.74 loads of choice, 11.22 loads of
select, zero loads of trim and 13.34 loads of ground beef).
The feeder cattle complex was initially worried about what corn prices were
going to do, still feeders are taking the market by storm as they rally $1.00
to $2.00 higher. It's also helping that the live cattle market is too pressing
onward and that starting on Wednesday, Superior Livestock Auctions will be
hosting their Corn Belt Classic Video Auction, which will begin to set a tone
for the fall feeder cattle market, and prices are expected to be strong. August
feeders are up $1.45 at $244.05, September feeders are up $1.72 at $247.35 and
October feeders are up $2.12 at $249.77.
The lean hog complex is thriving as the market gapped higher at Tuesday's
start and is continuing to trade higher into the noon hour. Midday pork cutout
values may be lower but there's tremendous support currently being seen in the
cash market as morning prices are up $10.31. Markets have a tendency to overdue
themselves, and maybe traders are beginning to believe that the downward
pressured endured by the lean hog market over the last three months was
overdone. June lean hogs are up $2.10 at $87.42, July lean hogs are up $3.32 at
$87.47 and August lean hogs are up $2.62 at $84.25.
The projected lean hog index for June 5 is up $0.65 at $81.86 and the actual
index for June 2 is up $0.69 at $81.21. Hog prices are higher on the Daily
Direct Morning Hog Report, up $10.31 with a weighted average price of $90.61,
ranging from $77.00 to $95.00 on 10,851 head and a five-day rolling average of
$85.32. Pork cutouts total 188.13 loads with 175.52 loads of pork cuts and
12.60 loads of trim. Pork cutout values: down $3.78, $85.28.
ShayLe Stewart can be reached firstname.lastname@example.org
Join us Friday at 11 a.m. CDT for coverage of the June WASDE report. At
12:30 p.m., DTN Lead Analyst Todd Hultman will review details of the report in
his monthly webinar. You can sign up for that webinar here:
(c) Copyright 2023 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up