GENERAL COMMENTS:
The livestock complex is trading mixed into Monday's noon hour as traders long to see what demand shapes up to be this week. The cattle contracts have found support around the market's 40-day moving average. Meanwhile, the lean hog complex is trending lower as traders aren't seeing much interest in the cash market. July corn is up 1 cent per bushel and July soybean meal is down $0.40. The Dow Jones Industrial Average is down 83.89 points.
LIVE CATTLE:
The live cattle complex is trading higher into Monday's noon hour as traders are wanting to believe that fundamental support will continue to support the contracts this week. June live cattle are up $0.02 at $161.95, August live cattle are up $0.20 at $159.70 and October live cattle are up $0.27 at $163.85. Boxed beef prices are lower at midday, but all throughout last week's market, prices traded on average higher than what the did the week before. Beef demand will remain a crucial component moving forward as feedlots strive for steady/higher prices in the cash cattle market.
Last week a light to moderate trade took place on Wednesday and Thursday, with just a little clean up trade on Friday. Northern dressed cattle traded for $278 to $285, but mostly for $281 which is $3.00 lower than the previous week's weighted average. Southern live cattle traded for $170 to $174, but mostly at $172 which is $1.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 86,560 head. Of that, 70% (60,706 head) were committed for the nearby delivery, while the remaining 30% (25,854 head) were committed for the deferred delivery.
Boxed beef prices are lower: choice down $0.81 ($308.38) and select down $1.87 ($286.29) with a movement of 35 loads (19.48 loads of choice, 8.52 loads of select, zero loads of trim and 6.55 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is off to a better start this week as all the contracts are at least trading $1.00 higher. It's helping that the live cattle contracts are too trading higher and that corn prices are trading lower, down $0.01 to $0.07 to be exact. Feeders have found support around the markets 40-day moving average, like the live cattle contracts did. Demand throughout the countryside continues to be stellar for feeders, so if the futures complex can continue to see ample technical support, it should have no issue trading higher. May feeders are up $1.15 at $203.67, August feeders are up $1.42 at $222.85 and September feeders are up $1.35 at $226.40.
LEAN HOGS:
The lean hog complex isn't seeing the same support that the cattle contracts are Monday morning as traders are letting the lean hog contracts drift slightly lower into the noon hour. June lean hogs are down $0.12 at $83.65, July lean hogs are down $0.50 at $84.92 and August lean hogs are down $0.47 at $85.90. That could partly be because the cash market hasn't seen much action over the last two trading days, but pork cutout values are higher at midday. Not much cash interest is expected of the hog market on Mondays, but if pork cutout values can indeed close higher, that could help Tuesday's market.
The projected lean hog index for May 5 is down $0.12 at $74.42 and the actual index for May 4 is up $0.29 at $74.53. Hog prices are again unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that 2,890 head have traded and that the market's five-day rolling average now sits at $71.59. Pork cutouts total 130.06 loads with 112.12 loads of pork cuts and 17.94 loads of trim. Pork cutout values: up $1.70, $83.57.
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