GENERAL COMMENTS:
The livestock complex is trading well into Tuesday's noon hour as the market is seeing ample support in the cattle complex thanks to stronger boxed beef prices. Seasonal beef demand has been slow to develop, but it's appearing as though seasonal demand is coming to fruition. July corn is down 3 1/2 cents per bushel and July soybean meal is up $5.30. The Dow Jones Industrial Average is down 0.71 points.
LIVE CATTLE:
The market has patiently waited for boxed beef demand to substantiate and between Monday afternoon's higher close and today's higher prices at midday -- it would appear that seasonal beef demand has kicked into gear. Thankfully the uptick in boxes has helped propel the live cattle contracts higher too as traders have been meticulously monitoring beef demand as they would like to break the market out of its current sideways trading range but needed fundamental support to encourage that type of move. June live cattle are up $2.80 at $178.37, August live cattle are up $2.92 at $176.30 and October live cattle are up $2.50 at $179.32. No news has developed thus far in the cash cattle market and it's likely that the week's trade is delayed until after Wednesday.
Boxed beef prices are higher: choice up $4.65 ($303.60) and select up $5.72 ($292.90) with a movement of 82 loads (38.24 loads of choice, 12.37 loads of select, 12.58 loads of trim and 18.99 loads of ground beef).
FEEDER CATTLE:
With boxed beef prices up substantially, the feeder cattle market hasn't been bashful about trading higher as traders are seeing the support they desperately were yearning for. May feeders are up $3.67 at $243.05, August feeders are up $4.77 at $256.10 and September feeders are up $4.77 at $256.85. It's encouraging to see the market trading about its 100-day moving average, as this might be the shot of encouragement that the market was searching for as traders wanted to trade the complex higher but needed fundamental support before doing so.
LEAN HOGS:
Even the lean hog complex is trading higher as traders are encouraged to see midday pork cutout values higher -- and not solely because of a wild jump in the belly but because of steady gains seen across the majority of the cuts. June lean hogs are up $0.70 at $98.17, July lean hogs are up $0.72 at $100.77 and August lean hogs are up $0.55 at $99.82. The cash hog market still hasn't seen much interest develop as packers have only vaguely supported the complex, but interest should improve either later this afternoon or Wednesday.
The projected lean hog index for 5/13/2024 is up $0.07 at $91.29 and the actual index for 5/10/2024 is down $0.10 at $91.22. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However, we can see that 650 head have traded, and that the market's five-day rolling average now sits at $90.44. Pork cutouts total 139.24 loads with 121.08 loads of pork cuts and 18.17 loads of trim. Pork cutout values: up $0.33, $102.77.
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