GENERAL COMMENTS:
The livestock complex is mixed as traders want to support the markets but have gotten cold feet as Monday noon approaches. Before they do so confidently, they're going to need see support in this week's market. July corn is down 5 1/2 cents per bushel and July soybean meal is down $8.10. The Dow Jones Industrial Average is up 107.07 points.
LIVE CATTLE:
The live cattle complex is trading modestly lower into Monday's noon hour as traders opened the market mostly steady with Friday's close but have since then slightly worked the prices back. Following last week's thrilling gains in the cash cattle market, it's easy to understand why traders were so eager to support the complex at Monday's start, but now that traders have settled into the new week, they're already looking for reassurance that the market is indeed meant to continue to trade higher. June live cattle are up $0.17 at $187.00, August live cattle are down $0.35 at $182.82 and October live cattle are down $0.22 at $184.62. Please note there will be another Cattle on Feed report Friday. New showlits are higher in all major feeding areas somewhat higher in Kansas, but much higher in Texas and Nebraska/Colorado.
Last week Northern dressed cattle traded anywhere from $301 to $311, but mostly at $305 to $306, which is $4.00 to $5.00 higher than the previous week -- and new all-time high prices for the North. Southern live cattle traded for $184 to $195, but mostly at $186, which is $1.00 higher than the previous week's weighted average.
Boxed beef prices are higher: up $0.75 ($320.64) and select up $2.40 ($306.21) with a movement of 35 loads (23.40 loads of choice, 7.23 loads of select, zero loads of trim and 4.09 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex also opened higher, but as Monday's noon hour approaches the complex is trading mixed with weaker undertones quickly becoming the market's theme. The slight retreat seen throughout the futures complex isn't necessarily weakness overtaking the market following last week's tremendous support seen fundamentally in sales across the countryside, but rather traders are hoping to find that same level of support this week fundamentally from the market. August feeders are down $0.70 at $261.22, September feeders are down $0.20 at $262.50 and October feeders are up $0.05 at $263.15.
LEAN HOGS:
The lean hog complex is trading slightly higher as traders are hopeful that domestic demand will remain strong in the market and that the technical support in the futures complex will hold. July lean hogs are up $1.32 at $94.97, August lean hogs are up $0.95 at $91.40 and October lean hogs are up $0.27 at $77.02. Midday pork cutout values are lower, which could cause traders some grief later if demand doesn't come to fruition.
The projected CME Lean Hog Index for 6/14/2024 is down $0.71 at $90.73, and the actual index for 6/13/2024 is down $0.14 at $91.44. Hog prices are unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 30 head of hogs have traded, and the market's five-day rolling average now sits at $87.23. Pork cutouts total 163.46 loads with 149.89 loads of pork cuts and 13.57 loads of trim. Pork cutout values: down $2.97, $98.38.
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