GENERAL COMMENTS:
The feeder cattle complex is powering its way through Wednesday's trade and thankfully the live cattle complex is able to follow in its wake as its market is receiving some of the spillover support. Meanwhile, the lean hog complex continues to trade lower as demand remains unfruitful. August live cattle are up $1.03 at $181.45, August feeder cattle are up $2.73 at $262.55, June lean hogs are down $1.15 at $95.25, July corn is up 3 1/2 cents per bushel and July soybean meal is up $0.30. The Dow Jones Industrial Average is down 48.03 points.
LIVE CATTLE:
Even though midday boxed beef prices are lower, the live cattle complex doesn't seem to be too concerned as the market continues to charge higher. June live cattle are up $0.85 at $183.82, August live cattle are up $0.90 at $181.32 and October live cattle are up $1.07 at $184.22. If afternoon boxed beef prices close lower, there's a chance traders could pull back from the market Thursday. But at this point, the complex still feels as though support is strong enough to justify higher trade. Still no cash cattle trade has developed and it's likely the market will wait to trade cattle Thursday, or even more likely on Friday. Asking prices in the South are noted at $188 to $190 but remain unestablished still in the North.
Boxed beef prices are lower: choice down $0.93 ($312.09) and select down $0.78 ($300.09) with a movement of 84 loads (58.43 loads of choice, 10.08 loads of select, 4.91 loads of trim and 10.38 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is seeing the most support thus far Wednesday as the contracts are trading anywhere from $1.00 to $2.00 higher. It's significant to see the spot August contract trading above its 100-day moving average, which is also likely adding fuel to the live cattle complex as the feeder cattle market's power is strong this morning. August feeders are up $2.55 at $262.37, September feeders are up $2.27 at $263.40 and October feeders are up $2.10 at $263.10. The May 2024 feeder cattle contract will expire Thursday, and currently there's a $12.00 spread between the May 2024 and August 2024 feeder cattle contracts.
LEAN HOGS:
With demand continuing to lag in the pork sector, the lean hog complex is continuing to trade lower as the market desperately yearns for demand but continues to be disappointed by consumer interest. June lean hogs are down $1.15 at $95.25, July lean hogs are down $1.45 at $97.87 and August lean hogs are down $1.20 at $97.37. The loin continues to pull the carcass price lower as its down $2.70 Wednesday morning, and the butt is an issue this morning as its down $6.37.
The projected CME Lean Hog Index for 5/21/2024 is down $0.19 at $91.82 and the actual index for 5/20/2024 is down $0.21 at $92.01. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.47 with a weighted average price of $87.02, ranging from $85.00 to $88.00 on 1,721 head and a five-day rolling average of $88.26. Pork cutouts total 153.30 loads with 125.75 loads of pork cuts and 27.56 loads of trim. Pork cutout values: down $0.59, $100.10.
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