GENERAL COMMENTS:
Both the live cattle and feeder cattle contracts are rallying into Monday's noon hour, but the lean hog market is trading mixed as its own market is torn on what direction it should trade. Either way, with corn prices trading lower thus far, cattlemen are eager at the opportunity that could loom if feed prices continue to dwindle. July corn is down 12 1/2 cents per bushel and July soybean meal is up $0.20. The Dow Jones Industrial Average is down 60.97 points.
LIVE CATTLE:
The live cattle complex is running into Monday's market with the same vigorous attitude that it possessed last week. It's helping matters that boxed beef prices are continuing to see tremendous support, which consequently keeps packers engaged in the cash market. It's too early to tell what cash cattle prices will do this week, but feedlots are seeming to grow stronger in their quest for more market leverage and are understanding that, if they want higher prices, they have to market their cattle accordingly. June live cattle are up $0.92 at $177.35, August live cattle are up $0.60 at $173.50 and October live cattle are up $0.35 at $176.35.
Boxed beef prices are higher: choice up $3.76 ($313.69) and select up $5.16 ($296.09) with a movement of 55 loads (25.58 loads of choice, 10.03 loads of select, 8.14 loads of trim and 11.11 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are having no issue trading higher as the corn complex trades $0.03 to $0.10 lower into Monday's noon hour. With many of the Western Mountain states getting moisture over the last couple of weeks, the sentiment throughout the feeder cattle market has been extremely strong as ranchers are seeing some range/grassland improvement and as the interest in feeders continues to be extremely high throughout the countryside. With the live cattle market's support, the only hindering factor that the feeder cattle market must closely watch is corn prices, and, thus far Monday, they're trading lower. August feeders are up $0.70 at $242.60, September feeders are up $0.62 at $245.62 and October feeders are up $0.57 at $247.57.
LEAN HOGS:
The lean hog complex has grown stronger as the day has traded on, but the nearby contracts are still struggling with the deferred contracts trade slightly higher. June lean hogs are down $0.97 at $85.72, July lean hogs are down $0.22 at $84.42 and August lean hogs are down $0.52 at $81.77. The entire lean hog complex is a mixed marketplace Monday morning as pork cutout values are sharply higher, but cash prices are still trading slightly lower. Once again, the wild nature of Monday's midday carcass price is being thrown out of whack by a $36.33 rally in the belly, and by a $10.01 rally in the ham. Be on the look out for afternoon cutout prices because anything could be in the cards.
The projected lean hog index for June 2 is up $0.69 at $81.21, and the actual index for June 1 is up $0.89 at $80.52. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.07 with a weighted average price of $80.30, ranging from $80.00 to $89.00 on 3,490 head and a five-day rolling average of $81.90. Pork cutouts total 154.30 loads with 138.20 loads of pork cuts and 16.10 loads of trim. Pork cutout values: up $8.06, $92.78.
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