GENERAL COMMENTS:
The cattle complex is trading higher into Tuesday's noon hour as the market is currently well supported by Friday's encouraging Cattle on Feed report and by continued beef demand. Meanwhile, the lean hog complex is trading mixed as the nearby contracts continue to question demand in the immediate future while the deferred contracts inch modestly higher. July corn is down 2 3/4 cents per bushel and July soybean meal is down $9.90.
The Dow Jones Industrial Average is down 173.68 points.
LIVE CATTLE:
The live cattle complex is trading modestly higher into Tuesday's noon hour as traders are encouraged by Friday's strong Cattle on Feed report and the continued support of higher boxed beef prices. June live cattle are up $0.45 at $184.15, August live cattle are up $0.32 at $181.45 and October live cattle are up $0.32 at $184.27. It's still too early to know what this week's cash cattle trade is going to amount to, but if beef demand continues to trend higher, there's a chance the cash cattle market could trade higher again this week.
Last week Southern live cattle traded for mostly $187, which is $1.00 higher than last week's weighted average; Northern dressed cattle traded for mostly $302 to $305, which is steady to $5.00 higher than the previous week's weighted average.
Boxed beef prices are higher: choice up $2.06 ($312.51) and select up $1.49 ($303.21) with a movement of 52 loads (30.37 loads of choice, 10.06 loads of select, zero loads of trim and 11.54 loads of ground beef).
FEEDER CATTLE:
Between last Friday's bullish Cattle on Feed report, to the slight decline in corn prices, the feeder cattle complex has all the support it needs to trade higher. August feeders are up $3.92 at $264.15, September feeders are up $3.50 at $265.25 and October feeders are up $3.25 at $265.80. The market is currently thriving as it's in what seems to be a "perfect storm" as demand continues to drive boxed beef prices higher and feeder cattle interest in sale barns across the country remains incredibly strong. The market is just three short weeks out from seeing what the first big online feeder cattle sales are going to do for the year and, at this point, higher prices seem likely.
LEAN HOGS:
Even though midday pork cutout values are noticeably higher, the lean hog complex continues to trade mixed with the market's nearby contracts lower while the deferred months trade mildly higher. Traders and pork producers both like to see the midday carcass price higher, but after a long stretch of weak pork demand, traders want to see continued pork interest at the meat counter before they'll begin to believe that demand is substantiating. Not to mention, the carcass price is being heavily influenced by the $10.15 rally in the belly. June lean hogs are down $0.25 at $94.00, July lean hogs are down $0.55 at $96.70 and August lean hogs are down $0.77 at $96.12.
The projected CME Lean Hog Index for 5/24/2024 is down $0.37 at $91.26, and the actual index for 5/23/2024 is down $0.14 at $91.63. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidently. However, we can see that only 205 head have traded and the market's five-day rolling average now sits at $86.97. Pork cutouts total 154.10 loads with 123.31 loads of pork cuts and 30.80 loads of trim. Pork cutout values: up $4.23, $103.37.
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