GENERAL COMMENTS:
The livestock complex is trading mostly higher with the live cattle market remaining hesitant. Both the feeder cattle and lean hog markets see Tuesday's opportunity with the onset of lower corn prices. July corn is down 12 cents per bushel and July soybean meal is down $5.30. The Dow Jones Industrial Average is down 193.40 points.
LIVE CATTLE:
The live cattle complex is again trading mixed as the market would like to rally beside its fellow livestock contracts, but the market is cautious to do so ahead of seeing what the week's cash cattle trade will amount to, and as it tries to suppress the anxious feelings that happen whenever a Cattle on Feed report is set to be released. June live cattle are down $0.15 at $164.17, August live cattle are up $0.02 at $162.77 and October live cattle are up $0.05 at $167.17. The market is far from any resistance support that could stem from the highs made in early April. Now the only hinderance keeping the market from achieving stronger trade is the hesitant tone that traders have adopted as they wait to see the week's fundamentals unroll. No cash cattle trade has been reported and asking prices are still unknown. It's likely that the week's trade waits to develop until Wednesday or later.
Boxed beef prices are lower: choice down $1.81 ($300.17) and select down $0.04 ($284.67) with a movement of 81 loads (56.51 loads of choice, 18.11 loads of select, zero loads of trim and 6.87 loads of ground beef).
FEEDER CATTLE:
It comes as no surprise that the feeder cattle contracts are trading higher as the market loves the onset of weaker priced corn. A cheaper feeding scenario always makes cattle buyers more eager to fill their pens, so feeder cattle traders are sending the contracts higher with the continued decline of corn prices. August feeders are up $0.45 at $231.50, September feeders are up $0.57 at $234.42 and October feeders are up $0.50 at $236.27.
LEAN HOGS:
As nearby corn prices fall an additional $0.10 to $0.12 on top on Monday's decline, the lean hog complex is rallying into Tuesday's noon hour with modest confidence. Some of the deferred months are trading slightly lower, but the nearby contracts are trading fully higher. June lean hogs are up $0.85 at $87.00, July lean hogs are up $0.57 at $88.07 and August lean hogs are up $0.55 at $88.27. Also lending the market support is the fact that pork cutout values are higher yet again, and while we know that midday pork cutout prices don't carry much assurance, higher prices always make the market feel better.
The projected lean hog index for May 15 is up $0.67 at $77.17 and the actual index for May 12 is up $0.59 at $76.50. Hog prices on the Daily Direct Morning Hog Report average $73.01, ranging from $72.00 to $79.00 on 3,250 head and a five-day rolling average of $76.01. Pork cutouts total 197.35 loads with 177.09 loads of pork cuts and 20.26 loads of trim. Pork cutout values: up $0.47, $84.85.
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