GENERAL COMMENTS:
The cattle complex is holding its ground through Thursday's market and is showing everyone, from traders to cattlemen, that the market is coming to terms with the long-term, higher price trajectory of the market. Meanwhile, the lean hog complex is suffering as pork cutout values bounce around and traders remain absent from the complex. July corn is up 12 cents per bushel and July soybean meal is up $9.90. The Dow Jones Industrial Average is down 133.10 points.
LIVE CATTLE:
After Wednesday's impressive rally, everyone was curious how Thursday's market would treat the live cattle sector and if the contracts would just come crumbling down as fast as it shot up. However, given the strong fundamental support that the market's backed with, traders are letting the contracts drift mildly higher and continuing to show their support and interest in the market. June live cattle are up $0.32 at $137.15, August live cattle are up $0.12 at $137.65 and October live cattle are up $0.30 at $143.05. The cash cattle market hasn't seen a tremendous amount of interest following Wednesday's higher trade, but a single bid of $136 is being offered in Kansas. Texas has had a light to moderate business at mostly $136, $1 higher than last week's weighted average. Northern dressed deals have been marked at mostly $225 to $226, $3 to $4 higher than last week's weighted average basis Nebraska. Asking prices Thursday are around $138 to $140 in the South and $228 in the North.
Beef net sales of 17,700 mt for 2022 were down 1% from the previous week and 21% from the prior four-week average. The three largest buyers were Japan (5,600 mt), China (5,200 mt) and South Korea (3,600 mt).
Boxed beef prices are mixed: choice down $0.55 ($271.19) and select up $0.36 ($249.77) with a movement of 52 loads (26.67 loads of choice, 17.42 loads of select, zero loads of trim and 8.40 loads of ground beef).
FEEDER CATTLE:
The spot July corn contract is up $0.14 Wednesday morning, but for the rest of the corn complex, gains of $0.03 to $0.06 are more common. The corn market's higher tone hasn't affected the nearby feeder cattle contracts, but the deferred months are trending just slightly lower. Thankfully, the momentum that fueled the live cattle complex higher hasn't abandoned the market come Thursday, and given that the live cattle complex is still trading stronger, feeders are moving ahead with strong fundamental and technical support. August feeders are up $0.60 at $176.25, September feeders are up $0.52 at $177.77 and October feeders are up $0.07 at $179.00.
LEAN HOGS:
As the cattle market continues to get all the market's attention, the lean hog complex has been left to faint lower. July lean hogs are down $2.27 at $105.70, August lean hogs are down $1.92 at $103.97 and October lean hogs are down $0.60 at $92.42. Not helping the lean hog market's lower attitude is the fact that pork cutout values closed over $3.00 lower Wednesday afternoon. Pork cutout prices are higher Thursday morning, but traders are needing stable and consistent support in this market, not touch and go minor successes.
Pork net sales of 16,700 mt for 2022 were down 48% from the previous week and 44% from the previous four-week average. The three largest buyers were Mexico (8,300 mt), Japan (4,700 mt) and South Korea (900 mt).
The projected lean hog index for June 8 is down $0.17 at $107.31, and the actual index for June 7 is down $0.32 at $107.48. Hog prices are higher on the Daily Direct Morning Hog Report, up $3.82 with a weighted average of $117.94, ranging from $112.00 to $122.00 on 7,235 head and five-day rolling average of $115.64. Pork cutouts total 127.80 loads with 111.63 loads of pork cuts and 16.17 loads of trim. Pork cutout values: up $4.43, $108.90
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