GENERAL COMMENTS:
Both the live cattle and feeder cattle contracts are still trading higher as the markets continue to thrive on Wednesday's cash cattle market success. Thursday's export report did little for live cattle or lean hog markets. July corn is up 1/4 cent per bushel and July soybean meal is down $5.60. The Dow Jones Industrial Average is down 117.77 points.
LIVE CATTLE:
Many of the nearby live cattle contracts are trading at new contract highs as the market continues to rally on Wednesday's strong performance in the cash cattle sector. It's also helpful that traders were greeted with a higher midday boxed beef report as buyers continue to show impeccable demand at the meat counter. Not new cash cattle trade has been reported at this point, but more cleanup trade is likely. Asking prices for cattle left on showlists remains around $173 in the South and $288 in the North. June live cattle are up $0.67 at $166.77, August live cattle are up $0.27 at $164.40 and October live cattle are up $0.32 at $168.70.
So far this week, Southern live cattle have traded for mostly $171, which is steady in Kansas but $1.00 higher in Texas, and Northern dressed cattle have traded for mostly $285 to $286, which is $4.00 to $5.00 higher than last week's weighted average.
Beef net sales of 18,300 mt for 2023 were up 5% from the previous week and 15% from the prior four-week average. The three largest buyers were Japan (5,500 mt), South Korea (3,800 mt) and China (2,500 mt).
Boxed beef prices are higher: choice up $0.64 ($298.94) and select up $1.14 ($284.93) with a movement of 56 loads (36.50 loads of choice, 16.80 loads of select, zero loads of trim and 2.40 loads of ground beef).
FEEDER CATTLE:
The feeder cattle market is rallying strong into Thursday's noon hour as the market doesn't mind the mild rally taking place in the corn complex given the strong support it's recently received from the live cattle/cash cattle markets and from the tremendous interest from buyers in the countryside. The stronger the live cattle complex can run, the more opportunities that come to mind for the feeder cattle complex, as feeder cattle buyers simply possess more options in market their fats. August feeders are up $0.17 at $234.67, September feeders are up $0.42 at $238.05 and October feeders are up $0.47 at $240.05.
LEAN HOGS:
One might as well be cutting trees and yelling "timber," because the lean hog complex is seeming to fall with that type of dramatic nature. With nothing seeming to comfort the complex, one begins to wonder where the bottom is. At this point, I think it's safe to say that it hasn't been found as Thursday's market is yet again pressured and aggressively so as nearby contracts are falling $1.00 to $2.00 lower. June lean hogs are down $1.32 at $78.45, July lean hogs are down $2.80 at $78.02 and August lean hogs are down $2.80 at $77.57.
The projected lean hog index for May 24 is up $0.13 at $80.80, and the actual index for May 23 is up $0.58 at $80.67. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.38 with a weighted average price of $78.99, ranging from $73.00 to $85.00 on 6,924 head and a five-day rolling average of $78.32. Pork cutouts total 134.70 loads with 113.29 loads of pork cuts and 21.40 loads of trim. Pork cutout values: up $2.91, $83.78.
Pork net sales of 29,200 mt for 2023 were down 8% from the previous week and 29% from the prior four-week average. The three largest buyers were Mexico (14,400 mt), Japan (4,400 mt) and South Korea (4,400 mt).
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