GENERAL COMMENTS:
The live cattle market is trending higher into Tuesday's afternoon and is clinging to the hope that cash cattle will trade at least steady this week. The feeder cattle market isn't given the same set of supportive cards to work with as the corn market is scaling higher. The lean hog complex is trending mixed as the cash market is seeing ample support, but pork cutout values are mixed which has the futures market on edge. July corn is up 18 1/2 cents per bushel and July soybean meal is up $8.60. The Dow Jones Industrial Average is down 31.91 points.
LIVE CATTLE:
The live cattle market is quietly trading higher as traders hope that feedlots are able to hold the cash market steady this week. June live cattle are up $0.90 at $133.72, August live cattle are up $1.05 at $133.95 and October live cattle are up $0.92 at $140.05. With slaughter speeds still running aggressively and carcass weights trending lower, feedlots sit with showlists still manageable. Last week was pivotal for the live cattle market as traders pushed the complex higher and seemed to have renewed hope throughout the marketplace. The cash cattle market hasn't seen any interest develop yet, and it's likely that the bulk of the week's business waits until Wednesday or later to trade. Asking prices of $137 to $138 are noted for the South, but initial asking prices for the North remain illusive at this point.
Boxed beef prices are mixed: choice up $2.12 ($271.70) and select down $0.32 ($250.77) with a movement of 86 loads (43.13 loads of choice, 14.64 loads of select, 5.20 loads of trim and 23.34 loads of ground beef).
FEEDER CATTLE:
As the corn market pushes a hefty $0.15 to $0.19 rally in its nearby contracts, the feeder cattle contracts are drifting lower as the market worries about input prices. August feeders are down $0.30 at $171.67, September feeders are down $0.45 at $174.10 and October feeders are down $0.57 at $176.25. Given that cost of gains are steadily around $1.30 per day, buyers looking to fill their pens with feeder cattle hoping to see the live cattle market grow stronger to promise some sort of a return. Even though input prices are high, sales early this week and late last week weren't short on active buyers as recent rains has helped pick up the market's morale.
LEAN HOGS:
Seeing that packers are jumping into the cash market with orders that need filled and the willingness to push prices higher to secure the hogs that they need is encouraging and helping to prop up the lean hog futures. July lean hogs are up $0.30 at $109.27, August lean hogs are up $0.60 at $107.30 and October lean hogs are up $0.30 at $93.45. Given that 10,832 head of hogs have already traded in the cash market, its higher tone for the day is set, but pork demand and the closing nature of the futures complex is still undecided and could tip either way before closing.
The projected lean hog index for June 6 is up $0.46 at $107.80 and the actual index for June 3 is up $1.29 at $107.34. Hog prices are higher on the Daily Direct Morning Hog Report, up $4.76 with a weighted average of $116.34, ranging from $106.00 to $120.00 on 10.832 head and a five-day rolling average of $114.19. Pork cutouts total 181.77 loads with 169.42 loads of pork cuts and 12.34 loads of trim. Pork cutout values: down $0.58, $108.21.
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