GENERAL COMMENTS:
Both the live cattle and feeder cattle contracts are trading higher into Friday's noon hour as the market is thankful to see boxed beef prices higher again and is still in awe of Thursday's strong trade in the cash cattle market. Heading into Friday afternoon, be ready for the Cattle on Feed report and for the potential that some more cash cattle trade could develop. August live cattle are up $0.78 at $181.85, August feeder cattle are up $0.15 at $261.6, July lean hogs are down $0.13 at $97.35, July corn is up 1 1/2 cents per bushel and July soybean meal is up $9.40. The Dow Jones Industrial Average is up 107.91 points.
LIVE CATTLE:
Even though no new cash cattle sales have been reported yet Friday, the live cattle complex is back to trading higher as Thursday's impressive trade in the cash market has captivated traders. Also helping matters Friday morning is the fact that boxed beef prices are back to trading fully higher too. Bids are currently offered in Kansas at $188 but no new sales have been reported at this point. More trade will likely develop throughout Friday afternoon, and there's still a chance that Southern live prices could trade higher. On Thursday, Southern live cattle traded for $187, which is $1.00 higher than last week's weighted average, and Northern dressed cattle traded for $300 to $304, which is steady to $4.00 higher than last week's weighted average. June live cattle are up $0.77 at $184.30, August live cattle are up $0.85 at $181.92 and October live cattle are up $0.70 at $184.77.
Boxed beef prices are higher: choice up $1.72 ($311.56) and select up $1.70 ($301.78) with a movement of 71 loads (48.87 loads of choice, 8.56 loads of select, 4.59 loads of trim and 9.40 loads of ground beef).
FEEDER CATTLE:
With the exciting news in the live cattle market (higher cash cattle trade and stronger boxed beef prices) the feeder cattle market is back to trading higher as the entire cattle complex is again encouraged. With the market currently trading at its two-month high, traders will likely allow the complex to trade steady to somewhat higher through Friday's end but not advance the market wildly before see what this afternoon's Cattle on Feed report amounts to. August live cattle are up $0.20 at $261.65, September feeders are up $0.40 at $263.12 and October feeders are up $0.25 at $263.57.
LEAN HOGS:
The lean hog complex is trading mixed into Friday's noon hour as some of the deferred contracts are seeing mild support while the nearby contracts continue to struggle as demand has not been as strong as hoped for. June lean hogs are down $0.17 at $94.35, July lean hogs are down $0.15 at $97.32 and August lean hogs are down $0.15 at $96.87. Midday pork cutout values may be higher, but traders aren't turning the nearby contracts higher as demand has been minimal throughout the earlier part of the week.
The projected CME Lean Hog Index for 5/23/2024 is down $0.14 at $91.63, and the actual index for 5/22/2024 is down $0.05 at $91.77. Hog prices on the Daily Direct Morning Hog Report average $86.88, ranging from $86.00 to $88.00 on 898 head and a five-day rolling average of $87.46. Pork cutouts total 171.06 loads with 158.78 loads of pork cuts and 12.28 loads of trim. Pork cutout values: up $0.78, $99.47.
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