GENERAL COMMENTS:
The livestock complex has slowed down as both the live cattle and feeder cattle futures are lower and lean hog futures are mixed. The cattle complex is looking for substantial fundamental support before traders are willing or confident to advance the market much more. July corn is down 6 1/2 cents per bushel and July soybean meal is down $6.30. The Dow Jones Industrial Average is down 341.32 points.
LIVE CATTLE:
The live cattle complex seems to be creating a new sideways trading range as the market patiently waits for something positive to develop. Yes, boxed beef demand is mixed and there's the expectation that cash cattle sales will trade at least steady again this week if not a little higher. But for Wednesday and at this exact moment, traders haven't come by the support they're longing for. June live cattle are down $1.12 at $183.45, August live cattle are down $1.42 at $180.40 and October live cattle are down $1.60 at $182.80. No cash cattle trade has developed at this point and it's likely the week's action again will be delayed until Thursday or Friday. No bids or asking prices have been noted yet.
Boxed beef prices are mixed: choice up $1.71 ($313.83) and select down $0.89 ($302.54) with a movement of 67 loads (39.73 loads of choice, 10.58 loads of select, 5.29 loads of trim and 11.36 loads of ground beef).
FEEDER CATTLE:
Even the rallying and robust feeder cattle complex is trading lower into Wednesday's noon hour as the market lacks sufficient support to keep trading higher. It's likely traders are wrestling with the findings of Tuesday's Crop Progress report as USDA shared that 83% of the corn crop was planted by May 26, which is just slightly ahead of the market's 5-year average, but not as high as traders had hoped. Nevertheless, the feeder cattle complex is virtually giving back all the position it earned through Tuesday's trade. August feeders are down $3.60 at $261.00, September feeders are down $3.22 at $262.47 and October feeders are down $2.92 at $263.32.
LEAN HOGS:
The lean hog complex is mixed as traders have noted that pork cutout values closed slightly higher Tuesday afternoon, but aren't willing to advance the market wildly as they'd like to see more consistent support before doing so. And midday pork cutout values are lower again. June lean hogs are up $0.07 at $93.87, July lean hogs are up $0.10 at $96.62 and August lean hogs are steady at $96.10. If afternoon pork cutout values close lower, it's likely nearby contracts will lose their higher tone when Thursday's market opens unless export demand is riveting.
The projected CME Lean Hog Index for 5/28/2024 is down $0.47 at $90.79, and the actual index for 5/24/2024 is down $0.37 at $91.26. Hog prices on the Daily Direct Morning Hog Report average $87.64, ranging from $84.00 to $89.50 on 1,789 head and a five-day rolling average of $87.39. Pork cutouts total 171.25 loads with 144.94 loads of pork cuts and 26.31 loads of trim. Pork cutout values: down $0.92, $102.48.
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