GENERAL COMMENTS:
The livestock complex is trading mixed going into Monday's noon hour as the cattle complex is aiming to move its contracts higher while the lean hog complex struggles to gain enough technical support to advance its market. With last week's cash cattle trade totaling an impressive 83,747 head, packers have likely bought enough supply in the last three weeks to where they can avoid having to pay higher prices in this week's cash trade. July corn is up 4 3/4 cents per bushel and July soybean meal is down $1.20. The Dow Jones Industrial Average is down 11.22 points.
LIVE CATTLE:
The live cattle complex is trading in the feeder cattle market's shadow as the market longs to trade higher but needs technical and fundamental support before it can confidently do so. Thankfully, the feeder cattle complex is leading the way, and with midday boxed beef prices higher, traders feel comfortable trading the live cattle contracts mildly higher. June live cattle are up $0.32 at $176.45, August live cattle are up $0.17 at $174.30 and October live cattle are up $0.32 at $177.75. Again this week, monitoring beef demand will be a key factor for the market and its ability to trade higher.
Last week's negotiated cash cattle trade saw most of the week's trade develop on Friday, although there were a few sales reported Thursday afternoon. Southern live cattle traded at $183 to $187, but mostly at $184, which is steady with the previous week's weighted average, and Northern dressed cattle traded at $294 to $296, but mostly at $295, which is steady with the previous week's weighted average as well. Last week's negotiated cash cattle trade totaled 83,747 head. Of that, 67% (58,294 head) were committed to the nearby delivery and the remaining 33% (25,453 head) were committed to the deferred delivery.
Boxed beef prices are higher: choice up $3.71 ($298.28) and select up $2.30 ($286.47) with a movement of 50 loads (20.36 loads of choice, 7.83 loads of select, zero loads of trim and 22.30 loads of ground beef).
FEEDER CATTLE:
Even with Friday's WASDE report sharing mixed news for the cattle complex, the feeder cattle market is back to rocking and rolling as it charges higher into Monday's noon hour. Feeder cattle have been the leading force in the cattle market's quest to trade higher this spring, and so seeing feeders higher at Monday's debut brings a level of encouragement to the entire cattle complex. Timely rains and the gradual accumulation of moisture this spring are also helping the feeder cattle market as most producers are getting ready to turn out into summer pastures. May feeders are up $1.92 at $240.62, August feeders are up $2.25 at $253.25 and September feeders are up $2.12 at $254.10.
LEAN HOGS:
The lean hog complex started the day out trading higher, but as time passed, the lean hog market is now trading lower into Monday's noon hour as it is comfortably trading in a sideways trading range. The market's fundamentals are mixed at midday as there's been little cash interest that prices can't even be posted without violating confidentiality clauses, but midday pork cutout values are higher. Unfortunately, the midday carcass price is solely being skewed by the $8.50 jump in the belly as the rest of the cuts dance around steady prices. June lean hogs are down $0.22 at $98.15, July lean hogs are down $0.62 at $100.82 and August lean hogs are down $0.62 at $99.95.
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 482 head have traded and the market's five-day rolling average sits at $91.45. Pork cutouts total 149.52 loads with 136.62 loads of pork cuts and 12.89 loads of trim. Pork cutouts: up $1.58, $101.35.
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