Thursday Midday Livestock Market Summary - Light Southern Trade Beginning to Develop for $1 Higher

GENERAL COMMENTS:

With some light trade beginning to develop in the South for $1.00 higher than last week's weighted average, both the live cattle and feeder cattle contracts are continuing to trend higher. Meanwhile, not even better export news can help turn the lean hog complex higher as its market is frustrated by a lack of domestic demand. July corn is up 3 3/4 cents per bushel and July soybean meal is down $0.70. The Dow Jones Industrial Average is down 245.21 points.

Thursday's export report shared that beef net sales of 21,500 metric tons (mt) for 2024 were up 42% from the previous week and 32% from the prior four-week average. The three largest buyers were China (5,800 mt), South Korea (5,100 mt) and Mexico 2,900 mt). Pork net sales of 26,300 mt for 2024 were up 24% from the previous week but down 3% from the prior four-week average. The three largest buyers were Mexico (10,300 mt), Japan (4,100 mt) and South Korea (2,600 mt).

LIVE CATTLE:

Even though the choice cut is under some slight pressure, the live cattle complex is able to continue to trade higher as the market is encouraged by the light cash cattle trade that's developing in the South at $187, which is $1.00 higher than last week's weighted average. Bids of $300 to $302 dressed are being offered in Nebraska, but with feedlots asking $305 in the North, that bid simply won't do at this point. June live cattle are up $0.27 at $184.45, August live cattle are up $0.32 at $182.00 and October live cattle are up $0.30 at $184.95. Asking prices for cattle left to trade in the South remain firm at $188 to $190, and more trade will need to develop before the week's end.

Boxed beef prices are mixed: choice down $2.50 ($309.67) and select up $1.35 ($300.96) with a movement of 60 loads (39.66 loads of choice, 7.26 loads of select, 6.91 loads of trim and 6.64 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is continuing to grind higher as the market is encouraged by the early developments in this week's cash cattle market. Yes, corn prices are trading slightly higher, but traders are finding more support in the early notes of cash cattle sales than they are worried about $0.03 gains in the corn complex. Not to mention, sales in the countryside remain extremely strong, which is evident by the CME Feeder Cattle Index closing at $248.44 Wednesday afternoon. August feeders are up $0.15 at $263.05, September feeders are up $0.30 at $264.05 and October feeders are up $0.32 at $264.45.

LEAN HOGS:

Even though export sales were slightly better for the hog complex, the market continues to trade lower as pork cutout values continue to drop. June lean hogs are down $0.52 at $94.87, July lean hogs are down $0.45 at $97.67 and August lean hogs are down $0.42 at $97.12. Unfortunately until the hog complex finds some support, the technical downward spiral will likely continue.

The projected CME Lean Hog Index for 5/22/2024 is down $0.05 at the actual index for 5/21/2024 is down $0.19 at $91.82. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However, we can see that 969 head have traded and the market's five-day rolling average now sits at $87.97. Pork cutouts total 151.05 loads with 130.23 loads of pork cuts and 20.82 loads of trim. Pork cutout values: down $0.51, $99.56.