GENERAL COMMENTS:
Thus far Monday's trade has been a slow and sluggish day as all three of the livestock markets are trading lower. Given the fact the vast majority of the commodity market is trading lower, it's likely that this dreary nature sticks with the contracts through Monday's end. July corn is down 3 3/4 cents per bushel and July soybean meal is down $1.50.
The Dow Jones Industrial Average is down 386.12 points.
LIVE CATTLE:
With dreary tones hovering over the entire livestock and commodity complex, the live cattle market is trading just like the rest of the markets heading into today's noon hour -- fully lower. June live cattle are down $0.22 at $181.32, August live cattle are down $1.07 at $177.37 and October live cattle are down $1.42 at $179.37. Thankfully midday boxed beef prices are higher which could lend traders support later in the afternoon, and hopefully be a trend that continues throughout the vast majority of the week. But if the market performs seasonally as it has in years past, strong beef demand could stay strong through the first/second week of June before it begins to regress. New showlists appear to be mixed, higher in Kansas, but lower in Texas and Nebraska/Colorado.
Last week's negotiated cash cattle trade totaled 73,431 head. Of that 73% (53,578 head) were committed to the nearby delivery, while the remaining 27% (19,853 head) were committed to the deferred delivery. Last week Southern live cattle traded for mostly $186 which is $1.00 lower than the previous week's weighted average, and Northern dressed cattle traded for mostly $301 which is $3.00 lower than last week's weighted average.
Boxed beef prices are higher: choice up $1.35 ($314.55) and select up $2.24 ($303.95) with a movement of 55 loads (24.88 loads of choice, 12.37 loads of select, zero loads of trim and 17.39 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is continuing to trade lower as the market is currently being pressured by outside factors. With the entire commodity complex trading lower, feeders are simply following suit in their downward ascend. August feeders are down $2.27 at $254.12, September feeders are down $2.37 at $255.75 and October feeders are down $2.30 at $256.67. The spot August contract is currently trading below its 40-day moving average, and the next support plane sits around $250.00.
LEAN HOGS:
The lean hog complex attempted to trade higher earlier this morning, but as the market heads into Monday's noon hour, the complex is back to trading lower. June lean hogs are down $0.27 at $94.07, July lean hogs are down $0.40 at $96.72 and August lean hogs are down $0.60 at $95.90. Traders have seemed to find some technical support in the futures complex as the market continues to honor the support plane at $96.00. But with pork cutout values and cash prices both lower at Monday's start -- traders don't have much fundamental support encouraging them to advance the market.
The projected lean hog index for 5/31/2024 is up $0.24 at $91.73, and the actual index for 5/30/2024 is up $0.49 at $91.49. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However, we can see that only 421 head have traded, and the market's five-day moving average now sits at $87.47. Pork cutouts total 173.37 loads with 150.78 loads of pork cuts and 22.59 loads of trim. Pork cutout values: down $0.12, $103.13.
No comments:
Post a Comment