GENERAL COMMENTS:
Monday has not rolled into the new week with abundant support and markets that are jumping higher. Instead, the market seems to waiting and looking for concise direction as traders sit back idly. July corn is down 6 1/4 cents per bushel and July soybean meal is down $6.80. The Dow Jones Industrial Average is down 338.04 points.
LIVE CATTLE:
I understand corn prices "shouldn't" gravely affect the live cattle market. But to think that the two markets don't pay attention to one another is a farse. That being said, the spot June live cattle contract and the August 2022 contract are posting green figures while the rest of the market trends lower. June live cattle are up $0.87 at $133.62, August live cattle are up $0.05 at $135.40 and October live cattle are down $0.20 at $142.67. The cash cattle market is holding its breath as it knows its nearby fate is lower but the question that remains unanswered is: When? Packers have strategically bought up cattle for the upcoming weeks, which will minimize their need to participate in the cash cattle market. With boxed beef prices showing weakness in a time when, historically, the market would expect prices to be strong, packers won't bat an eye at letting cash prices flounder as their own margins see minor setbacks from a cost-concerned consumer base.
Last week's negotiated cash cattle trade totaled 109,180 head. Of that 70% (76,050 head) were committed for nearby delivery, while the remaining 30% (33,130 head) were committed for deferred delivery.
Boxed beef prices are mixed: choice up $4.57 ($259.01) and select down $0.81 ($244.25) with a movement of 71 loads (35.46 loads of choice, 21.48 loads of select, 2.97 loads of trim and 11.31 loads of ground beef).
FEEDER CATTLE:
Nearby feeder cattle contracts of May and August are pushing modest $0.05 gains while the rest of the feeder cattle complex drifts lower. The nearby contracts feel safe sporting their nickel higher advancement as the corn market is trading 8- to 13-cents weaker. But the feeder cattle complex knows that with the situation in Ukraine not seeming to get any better, corn prices will remain incredibly volatile. May feeders are up $0.05 at $159.80, August feeders are up $0.05 at $174.90 and September feeders are down $0.25 at $177.70.
LEAN HOGS:
The lean hog complex is not getting any free passes with Monday's trade as it is met with stiff pushback from traders. June lean hogs are down $2.62 at $101.47, July lean hogs are down $2.65 at $104.40 and August lean hogs are down $2.15 at $104.82. The market is looking for direction, which hog producers hope comes in the form of support, which would have to be pushed from consumers. Processing speeds were aggressive last week and could continue to stive for 480,000/day again this week, especially if pork cutout prices show any improvement.
The projected CME Lean Hog Index for 5/6/2022 is up $0.18 at $101.09, and the actual index for 5/5/2022 is down $0.05 at $100.91. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.97 with a weighted average of $101.42, ranging from $98.00 to $110.00 on 3,101 head and a five-day rolling average of $102.35. Pork cutouts total 166.65 loads with 139.56 loads of pork cuts and 27.09 loads of trim. Pork cutout values: down $0.16, $104.54.
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