GENERAL COMMENTS:
The livestock complex continues to trade mixed as the cattle contracts are holding their breath ahead of the afternoon's Cattle on Feed report and ahead of seeing what this week's cash cattle market does. Meanwhile, the lean hog complex is trading mixed as the nearby contracts take note of the modestly supportive export report and are thankful to see midday pork cutout values higher. July corn is down 2 3/4 cents per bushel and July soybean meal is up $6.10. The Dow Jones Industrial Average is down 17.67 points.
Thursday's export report shared that beef net sales of 14,900 mt for 2024 were up 24% from the previous week, but down 7% from the prior 4-week average. The three largest buyers were South Korea (4,700 mt), Japan (3,800 mt) and Mexico (2,100 mt). Pork net sales of 21,400 mt for 2024 were down 29% from the previous week and 34% from the prior 4-week average. The three largest buyers were Mexico (7,400 mt), Japan (5,800 mt) and the Dominican Republic (2,500 mt).
LIVE CATTLE:
The live cattle complex continues to watch time pass by, slowly but surely, as traders are eager to see what feedlot managers accomplish in this week's cash cattle trade. Packer interest has improved as there are bids currently being offered in Kansas at $184 to $185, and in Nebraska at $197 – but still no cattle have traded, and feedlots managers seem bound and determined to get their showlists traded for more money again this week. Asking prices in the South are noted at $189 to $190, and in the North at $310 to $312. Grab your popcorn and coke folks -- this afternoon's market is going to be one worth watching and when cash cattle do begin to trade, it will likely happen in a fast and furious manner! June live cattle are up $0.62 at $187.70, August live cattle are up $0.47 at $183.02 and October live cattle are down $0.30 at $183.52.
Boxed beef prices are lower: choice down $0.52 ($322.35) and select down $1.74 ($302.66) with a movement of 94 loads (69.32 loads of choice, 12.73 loads of select, 5.58 loads of trim and 6.69 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are keeping with their weaker trend as the market is desperate to see what this week's cash cattle market does and traders have also pulled back as they always do before the Cattle on Feed report is shared. August feeders are down $1.22 at $258.52, September feeders are down $1.15 at $260.02 and October feeders are down $1.12 at $260.75. Unfortunately, it's not likely that the market will see much improvement ahead of the day's end as traders will want to look through the COF data before they do much more in the feeder cattle complex.
LEAN HOGS:
The lean hog complex is trading mixed as the market is seeing modest support for its nearby contracts, but the market's deferred contracts are still trading lower. The morning's export report was modestly supportive, and thankfully even midday pork cutout values are higher. It's likely that the July and August contracts could keep their higher tone through the day's end with the support of better domestic pork interest. July lean hogs are up $0.62 at $91.80, August lean hogs are up $0.20 at $89.32 and October lean hogs are down $0.02 at $76.37.
The projected lean hog index for 6/21/2024 is down $0.23 at $90.32 and the actual index for 6/19/2024 is down $0.17 at $90.55. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.81 with a weighted average price of $86.46, ranging from $85.00 to $87.50 on 2,371 head and a five-day rolling average of $87.37. Pork cutouts total 207.10 loads with 190.65 loads of pork cuts and 16.45 loads of trim. Pork cutout values: up $3.15, $101.00.
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