GENERAL COMMENTS:
The livestock complex is trading mixed into Monday's noon hour as the market is seeing ample support in the cattle sector, but the lean hog contracts are continuing to drift lower. Note that there will be a Cattle on Feed report released on Friday. May corn is down 4 cents per bushel and May soybean meal is down $6.90. The Dow Jones Industrial Average is up 99.87 points.
LIVE CATTLE:
The live cattle complex has taken a confident approach to Monday's market as the contracts are all trading $1 to $2 higher into Monday's noon hour. I was anxious to see what the market would do today as traders pressured the market's support plane from April 12 and were mostly likely to either turn the market lower, signaling that a short-term bottom hasn't been established, or turn the market, building more confidence in the current support plane. Thankfully, traders have fully supported the market this morning and it's looking like the complex's support at $172 in the June contract is firm and holding. June live cattle are up $2.85 at $174.32, August live cattle are up $2.87 at $171.62 and October live cattle are up $2.65 at $174.42. Please note that there will be another Cattle on Feed report released this upcoming Friday. New showlists appear to be higher in all major feeding areas.
Last week, Southern live cattle traded for $181 to $185, but mostly at $182, which is $2 lower than the previous week's weighted average. Northern dressed cattle traded for $293 to $301, but mostly at $293 to $295, which is $2 to $4 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 64,875 head. Of that, 75% (48,628 head) were committed to the nearby delivery. The remaining 25% (16,247 head) were committed to the deferred delivery.
Boxed beef prices are higher: choice up $0.54 ($301.11) and select up $0.25 ($295.79) with a movement of 35 loads (20.20 loads of choice, 6.94 loads of select, zero loads of trim and 8.09 loads of ground beef).
FEEDER CATTLE:
Seeing the feeder cattle contracts trade higher brings cattlemen a bit of relief as the market has endured constant pressure over the last month. Between the higher note in the live cattle complex, the slight downturn in corn prices and the continued support of feeder cattle in the countryside, traders are seeing more than enough support to confidently advance the feeder cattle market. May feeders are up $4.55 at $238.75, August feeders are up $4.45 at $249.95 and September feeders are up $4.32 at $251.27.
LEAN HOGS:
The lean hog complex is again trading lower as the market yearns for technical interest from traders, but after having run the market to new contract highs just last week, traders remain cautious in their support of the hog complex. Part of traders' leeriness likely stems from concerns over whether consumers will continue to be avid supporters through the summer with inflation still wreaking havoc on the economy and their hard-earned dollars. June lean hogs are down $0.05 at $102.02, July lean hogs are down $1.17 at $103.07 and August lean hogs are down $1.07 at $101.17.
The projected lean hog index is delayed from the source. Hog prices are unavailable in the Daily Direct Morning Hog Report due to confidentiality. However, we can see that only 180 head have traded and the market's five-day rolling average now sits at $87.94. Pork cutouts total 138.16 loads with 124.04 loads of pork cuts and 14.13 loads of trim. Pork cutout values: up $3.10, $104.30.
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