Limited trade is seen through the complex with
nearby lean hog futures holding a moderate gain. There is expected to be
some additional movement through early next week, although trade is
likely to hold the current wide trading range over the near future. Corn
prices are lower in light trade. July corn futures are 3 cents lower.
Stock markets are mixed in light trade. The Dow Jones is 225 points
higher while Nasdaq is up 106 points.
LIVE CATTLE:
Live cattle futures have posted moderate losses
with late 2018 contracts posting 70-to-80-cent losses. There is limited
trade seen through the entire complex with prices focused on additional
softness at the end of the week despite the desire to bring increased
activity through the market during early June. Cash cattle activity
remains generally quiet with just a few sales developing in Kansas
through the morning at $110 per cwt. These prices are generally steady
with last week. Although light live trade developed in the North
Thursday, only scattered bids have redeveloped. Asking prices are seen
near $112 live and $183 dressed. Bids that have developed through the
morning are at $110 live and $175 dressed. Boxed beef cut-outs at midday
are mixed, $0.62 higher (select) and down $0.18 per cwt (choice) with
light movement of 73 total loads reported (33 loads of choice cuts, 10
loads of select cuts, 17 loads of trimmings, 14 loads of ground beef).
FEEDER CATTLE:
Light pressure has developed across the complex
with losses of 5 cents per cwt to 55 cents per cwt. There is increased
overall pressure seen through the entire complex. There is expected to
be some additional late-day softness developing across the complex.
Front month August futures are holding a 44 cent per cwt loss. There is
growing uncertainty with increased softness in the live cattle complex.
LEAN HOGS:
Nearby lean hog futures trade is mixed with
strong nearby contracts holding across the complex with June contracts
holding a $1.02 rally. July through October contracts are holding gains
from 12 to 72 cents per cwt with firm fundamental support helping to
draw buyers back into the market now that June has arrived. Light volume
is expected to be seen through the rest of the session. Cash prices are
higher on the National Direct morning cash hog report. The weighted
average price is up $0.45 at $69.24 per cwt with the range from $61.00
to $70.50 on 3,227 head reported sold. Cash prices are higher on the
Iowa/Minnesota Direct morning cash hog report. The weighted average
price is up $0.20 at $69.68 per cwt with the range from $61.00 to $70.50
on 620 head reported sold. The National Pork Plant Report posted 201
loads selling with carcass values falling $1.57 per cwt. Lean hog index
for 5/30 is at $69.63 up 0.13 with a projected two-day index of $70.01,
up 0.38.
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