GENERAL COMMENTS:
After rallying in a guns blazing style through all of Monday's market, both the live cattle and feeder cattle contracts are trading more meekly thus far Tuesday. Bids and asking prices still remain elusive in the cash cattle market. July corn is up 2 3/4 cents per bushel and July soybean meal is down $3.60. The Dow Jones Industrial Average is down 293.21 points.
LIVE CATTLE:
The live cattle contracts are trading slightly lower into Tuesday's noon hour as the market reassesses Monday's aggressive push. Thankfully boxed beef demand is still strong and with midday box prices higher, traders are only mildly walking the contracts back as opposed to hastily doing so. It's still too early in the week for cash cattle trade to have developed, but it's expected feedlot managers will price their showlists higher again as they are extremely current and packers didn't get many cattle bought last week. June live cattle are up $0.07 at $184.00, August live cattle are down $0.32 at $179.65 and October live cattle are down $0.02 at $182.15.
Boxed beef prices are higher: choice up $1.79 ($319.21) and select up $0.46 ($301.50) with a movement of 72 loads (38.47 loads of choice, 13.28 loads of select, 6.12 loads of trim and 14.10 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is also trading modestly lower into Tuesday's noon hour as traders want to ensure the market is well supported by fundamentals before they advance the contracts any more. Thankfully the board's slight regression doesn't seem to be having a negative effect on the Corn Belt Classic sale currently being held online by Superior Livestock Auctions as feeder cattle prices are incredibly strong. If anything, it's likely the market's strong showing of excellent demand from buyers will help the futures complex later again this week. August feeders are down $0.82 at $257.82, September feeders are down $0.75 at $258.97 and October feeders are down $0.70 at $259.50.
LEAN HOGS:
The lean hog complex is continuing its sideways chop as the market is desperately looking for demand, but continues to come up empty handed. Yes, midday pork cutout values may be higher, but with the belly up $17.26, the carcass price is being wildly skewed. There is a chance the afternoon cutout report is higher as the midday loin is up $4.97 and the rib is up $2.18 -- but time will tell. July lean hogs are up $0.32 at $93.22, August lean hogs are down $0.67 at $89.55 and October lean hogs are down $0.82 at $76.97.
The projected CME Lean Hog Index for 6/10/2024 is down $0.20 at $91.32 and the actual index for 6/7/2024 is down $0.23 at $91.52. Hog prices on the Daily Direct Morning Hog Report average $85.88, ranging from $84.00 to $88.00 on 1,115 head and a five-day rolling average of $86.68. Pork cutouts total 183.41 loads with 163.91 loads of pork cuts and 19.50 loads of trim. Pork cutout values: up $3.49, $103.91.
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