GENERAL COMMENTS:
The livestock complex is trading mixed into Wednesday's noon hour as the cattle sector thrives on stronger boxed beef prices, but the lean hog market isn't seeing much consistent pork demand which is why its market is mixed. Still, no cash cattle trade has developed and it looks like trade will be delayed until Thursday or potentially Friday. July corn is down 4 3/4 cents per bushel and July soybean meal is up $1.70. The Dow Jones Industrial Average is up 228.06 points.
LIVE CATTLE:
Continuing to rally on the strong fundamental support of boxed beef prices, the live cattle complex is entering Wednesday's noon hour higher. June live cattle are up $0.07 at $178.25, August live cattle are up $0.32 at $176.47 and October live cattle are up $0.15 at $179.50. The market is currently trading at the upper echelon of its current sideways trading range which could inflict some technical pressure as traders are forced to either break above that threshold or remain in the current trading range. No cash cattle trade has developed yet, and no asking prices have been noted. It's assumed that asking prices will be higher as feedlots have taken note of the strong interest in boxed beef, but time will tell.
Boxed beef prices are higher: choice up $2.98 ($307.37) and select up $0.85 ($294.67) with a movement of 60 loads (41.98 loads of choice, 7.97 loads of select, zero loads of trim and 10.26 loads of ground beef).
FEEDER CATTLE:
Like the live cattle complex, the feeder cattle market is trading higher into Wednesday's noon hour as traders continue to find support and reassurance in the market's higher boxed beef prices. May feeders are up $0.07 at $243.20, August feeders are up $0.15 at $255.82 and September feeders are up $0.17 at $256.80.
Following Tuesday's aggressive launch, traders are only mildly pushing the contracts higher as they wait to see what the cash complex achieves this week. Thankfully, timely moisture is helping improve pasture conditions which bode well for cow-calf producers.
LEAN HOGS:
The lean hog complex is trading mixed into Wednesday's noon hour as traders are braced for whatever may come of this afternoon's pork cutout close and expect lackluster export sales Thursday morning. June lean hogs are down $0.85 at $97.47, July lean hogs are down $0.05 at $100.87 and August lean hogs are up $0.02 at $99.92. Midday pork cutout values are slightly higher, but traders know it's the afternoon's carcass price that matters. Given that cash hog sales have been light this week, more sales are expected to develop later this afternoon and potentially even some more on Thursday depending on how aggressive packers are today.
The projected lean hog index for May 14 is up $0.47 at $91.76 and the actual index for May 13 is up $0.07 at $91.29. Hog prices on the Daily Direct Morning Hog Report average $88.96, ranging from $85.50 to $92 on 2,670 head and a five-day rolling average of $88.57. Pork cutouts total 166.80 loads with 140.21 loads of pork cuts and 26.59 loads of trim. Pork cutout values: up $0.81, $102.32.
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