Wednesday Midday Livestock Market Summary - Cattle Charge Higher as Support Pours into Market

GENERAL COMMENTS:

Both the live cattle and feeder cattle contracts are rallying into Wednesday's afternoon as the market charges through the day with robust support. As the cattle market finds exceptional technical and fundamental support, optimism continues to be the theme of the marketplace. July corn is up 6 1/2 cents per bushel and July soybean meal is up $5.20. The Dow Jones Industrial Average is up 223.29 points.

LIVE CATTLE:

Is there anything sweeter than a cattle rally mid-June? The board is rallying, the cash cattle market is rallying, and largely it's all thanks to green showlists and strong demand. June live cattle are up $2.77 at 4137.97, August live cattle are up $3.10 at $137.15 and October live cattle are up $2.60 at $142.75. The cash cattle market has seen a handful of trade in Nebraska and Texas at fully steady money with Tuesday's trade. Throughout the week thus far, Southern live cattle have traded from $136 to $139, which is steady to $2.00 higher. Northern dressed cattle have traded from $223 to $230, roughly $4.00 higher. A percentage of the dressed sales have been committed for the deferred delivery for the weeks of June 27 and July 4. As the futures market charges higher, much of the market's success over the next upcoming weeks will lay on the shoulders of throughput as traders are willing to support this market but strong fundamental support is going to have to pull its weight and show traders no weakness.

The Fed Cattle Exchange Auction held Wednesday reported 10 lots, totaling 790 head of cattle, none of which sold.

Boxed beef prices are higher: choice up $0.11 ($269.55) and select up $1.23 ($248.05) with a movement of 79 loads (51.50 loads of choice, 17.11 loads of select, 3.53 loads of trim and 6.71 loads of ground beef).

FEEDER CATTLE:

The grain complex is trending a penny to a nickel higher in its 2022 contracts, but that's not stopping the rally that's pushing feeders higher. August feeders are up $2.10 at $173.40, September feeders are up $1.97 at $175.32 and October feeders are up $1.85 at $177.12. With the onset of a higher live cattle market, a cash cattle market that's rallying another $2.00 to $4.00 higher and upon seeing the stellar interest that Superior Livestock Auction has had thus far in their Corn Belt Classis sale, the feeder cattle market is charged and ready for more.

LEAN HOGS:

While the cattle contracts rally throughout Wednesday, the lean hog complex is keeping to its own and is seeing a lower board thanks to fundamental weakness. July lean hogs are up $0.42 at $107.05, August lean hogs are down $0.40 at $103.15 and October lean hogs are down $0.52 at $90.97. It comes as no surprise following Tuesday's robust cash hog market that prices are lower today and volumes are lackluster but combine that with lower pork cutout values and the market grows grim in a hurry.

The projected lean hog index for June 14 is up $0.44 at $108.57 and the actual index for June 13 is up $0.73 at $108.13. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.06 with a weighted average of $116.64, ranging from $113.00 to $121.00 and on 5,371 head and a five-day rolling average of $116.72. Pork cutouts total 170.29 loads with 157.84 loads of pork cuts and 12.45 loads of trim. Pork cutout values: down $3.95, $104.72.