GENERAL COMMENTS:
Thus far it's been an uneventful and doggish day for the livestock complex as all three of the markets are trading lower and without any exciting fundamental news to rally and drive the contracts higher, this weaker tone could be seen through the day's end. Still no cash cattle trade has developed and it's likely that trade will be delayed until Friday at this point. July corn is down 5 cents per bushel and July soybean meal is down $3.10. The Dow Jones Industrial Average is down 314.40 points.
LIVE CATTLE:
The live cattle complex hasn't been able to shake the news that China has blocked beef imports from the JBS Greeley, Colorado plant as traces of ractopamine were found in meat from that plant. It's not helping matters either that the cash cattle market hasn't traded yet as it's assumed that cattle will trade higher again this week, but traders know better than to put the cart before the horse and count on that development before it happens. So, while positive fundamentals could still shake loose later this week, the market is stuck trading lower currently. June live cattle are down $0.85 at $182.50, August live cattle are down $0.95 at $179.25 and October live cattle are down $0.97 at $181.47. There are no bids currently being offered, but packer interest is expected to increase throughout the day. Asking prices in the South are noted at $189 to $191 but remain unestablished still in the North. At this point, trade will likely be delayed until Friday.
Boxed beef prices are mixed: choice up $0.81 ($314.43) and select down $0.28 ($302.20) with a movement of 63 loads (37.55 loads of choice, 16.57 loads of select, zero loads of trim and 9.04 loads of ground beef).
FEEDER CATTLE:
It's another dreary day for the feeder cattle complex as the market is currently trading $1.00 to $2.00 lower. At this point the spot August contract is trading below the market's 100-day moving average, which has been a critical threshold for the marketplace as it signals traders' support and overall attitude toward the market. Fundamental demand and interest remain incredibly strong for feeder cattle and calves, but Wednesday's announcement that China will not be accepting beef from the JBS plant in Greely, Colorado has rattled traders and consequently the feeder cattle contracts too. August feeders are down $2.55 at $257.50, September feeders are down $2.70 at $259.05 and October feeders are down $2.65 at $259.90.
LEAN HOGS:
The lean hog complex is again trading mixed as the nearby lean hog contracts celebrate the recent support that the carcass price has found, but the deferred contracts aren't as optimistic. Demand – both here and abroad – remains in question for the lean hog market, which is the biggest reason why the market continues to see mixed interest from traders. Weekly export sales will be released Friday morning (a day later than normal because of the holiday-shortened week). June lean hogs are up $0.20 at $93.97, July lean hogs are up $0.02 at $96.35 and August lean hogs are down $0.25 at $95.67.
The projected lean hog index for 5/29/2024 is up $0.21 at $91.00, and the actual index for 5/28/2024 is down $0.47 at $90.79. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.02 with a weighted average price of $87.66, ranging from $85.00 to $90.00 on 2,192 head and a five-day rolling average of $87.51. Pork cutouts total 158.35 loads with 149.23 loads of pork cuts and 9.12 loads of trim. Pork cutout values: up $0.49, $102.23.
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