GENERAL COMMENTS:
The livestock complex is rallying yet again as traders see the momentum in the market's fundamentals. No cash cattle trade has been reported and no substantial business is expected to develop until the second half of the week. July corn is up 3 1/4 cents per bushel and July soybean meal is down $4.30. The Dow Jones Industrial Average is down 33.43 points.
LIVE CATTLE:
The live cattle market is trading $1.00 to $2.00 higher into Tuesday's noon hour as excellent beef demand and the anticipation that feedlots are going to price cattle higher again this week helps fuel trader excitement. It's truly remarkable what beef prices have been able to accomplish here as of late as, seasonally, we'd expect that prices would be regressing, but consumers continue to yearn for more product, which is keeping packers engaged in the cash market. No cash cattle business has been reported at this point and it's likely that no trade develops until Thursday. Asking prices remain elusive as feedlots know that they sit in the driver's seat of this market. June live cattle are up $2.47 at $179.62, August live cattle are up $1.95 at $175.22 and October live cattle are up $1.75 at $178.07.
Boxed beef prices are higher: choice up $5.32 ($319.51) and select up $2.46 ($299.19) with a movement of 54 loads (29.74 loads of choice, 11.22 loads of select, zero loads of trim and 13.34 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex was initially worried about what corn prices were going to do, still feeders are taking the market by storm as they rally $1.00 to $2.00 higher. It's also helping that the live cattle market is too pressing onward and that starting on Wednesday, Superior Livestock Auctions will be hosting their Corn Belt Classic Video Auction, which will begin to set a tone for the fall feeder cattle market, and prices are expected to be strong. August feeders are up $1.45 at $244.05, September feeders are up $1.72 at $247.35 and October feeders are up $2.12 at $249.77.
LEAN HOGS:
The lean hog complex is thriving as the market gapped higher at Tuesday's start and is continuing to trade higher into the noon hour. Midday pork cutout values may be lower but there's tremendous support currently being seen in the cash market as morning prices are up $10.31. Markets have a tendency to overdue themselves, and maybe traders are beginning to believe that the downward pressured endured by the lean hog market over the last three months was overdone. June lean hogs are up $2.10 at $87.42, July lean hogs are up $3.32 at $87.47 and August lean hogs are up $2.62 at $84.25.
The projected lean hog index for June 5 is up $0.65 at $81.86 and the actual index for June 2 is up $0.69 at $81.21. Hog prices are higher on the Daily Direct Morning Hog Report, up $10.31 with a weighted average price of $90.61, ranging from $77.00 to $95.00 on 10,851 head and a five-day rolling average of $85.32. Pork cutouts total 188.13 loads with 175.52 loads of pork cuts and 12.60 loads of trim. Pork cutout values: down $3.78, $85.28.
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