GENERAL COMMENTS:
Both the live cattle and feeder cattle market are rallying into Thursday's noon hour as traders are anxiously awaiting to see what develops in the cash market. Meanwhile, the lean hog market isn't as optimistic as its market is trading mostly lower after posting two substantially higher days earlier this week. July corn is up 1 3/4 cents per bushel and July soybean meal is up $6.80. The Dow Jones Industrial Average is up 213.54 points.
LIVE CATTLE:
You could call this week's draw out cash cattle trade a slow game of cat and mouse as feedlots remain clam knowing that packer interest will need to increase as the minutes tick by. However, this week's trade is more card game when all the players have their poker faces on, as feedlots take an extra drag on their cigars, blow their smoke aside and then lean in next to packers and ask, "how bad do you want them?" There are bids of $170 to $171 being offered in Kansas, and bids of $183 to $185 live being offered in Colorado and Nebraska, as well as a bid of $288 dressed in Nebraska, but, at this point, feedlots have elected to let those offers sit on the table. Packer interest should improve as the afternoon passes by because packers simply cannot afford to be complacent in this week's market and come out short bought. The waiting nature of the cash cattle complex has traders chomping at the bit as they anxiously wait to see what prices do this week. June live cattle are up $3.67 at $172.80, August live cattle are up $3.25 at $170.87 and October live cattle are up $2.92 at $174.70.
Boxed beef prices are higher: choice up $1.23 ($307.07) and select up $0.01 ($287.16) with a movement of 72 loads (50.77 loads of choice, 17.84 loads of select, zero loads of trim and 3.16 loads of ground beef).
FEEDER CATTLE:
Thanks to the continued support of the live cattle complex, the feeder cattle contracts are still trading higher even though corn prices are now trading $0.02 to $0.08 higher in the nearby contracts. The live cattle market is seeming to rip-roar through Thursday's trade with feedlots letting packers sit anxiously as they wait for them to up their bids. It's likely that when cash cattle trade does develop this week that it will be steady to somewhat higher, which should help add even more support to feeders. August feeders are up $0.30 at $239.47, September feeders are up $0.62 at $242.82 and October feeders are up $0.62 at $244.75.
LEAN HOGS:
The lean hog complex has traded mixed throughout Thursday's market as traders are leery of advancing the market much more, but do appreciate the fundamental support that's helped support the complex this week. June lean hogs are up $0.27 at $82.85, July lean hogs are down $1.77 at $81.55 and August lean hogs are down $2.20 at $79.65. It's quite surprising that morning cash prices are up as aggressively as they are, which likely means that packers entered into this week's market short bought. Demand will likely remain strong through the afternoon, but Friday's market may not see the same interest.
The projected lean hog index for May 31 is up $0.10 at $79.63, and the actual index for May 30 is down $0.55 at $79.53. Hog prices are higher on the Daily Direct Morning Hog Report, up $5.13 with a weighted average price of $85.58, ranging from $79.00 to $90.00 on 11,630 head and a five-day rolling average of $81.18. Pork cutouts total 118.20 loads with 104.16 loads of pork cuts and 14.03 loads of trim. Pork cutout values: up $0.35, $85.62.
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