GENERAL COMMENTS:
Both the live cattle and feeder cattle futures contracts are trading higher as traders are encouraged by feedlot managers' willingness to wait until late in the week to market their showlists as they did last Friday and by Monday morning's higher note in boxed beef prices. The lean hog complex continues to struggle as demand remains insufficient. July corn is up 2 1/2 cents per bushel and July soybean meal is up $6.50. The Dow Jones Industrial Average is down 15.15 points.
LIVE CATTLE:
Traders are back to advancing the live cattle complex as they were pleased to see boxed beef prices perform as well as they did last week and pleased to see feedlot managers willing to wait until late in the week to trade cattle. June live cattle are up $1.70 at $183.87, August live cattle are up $2.72 at $179.92 and October live cattle are up $2.32 at $182.00. With midday boxed beef prices higher and traders eager to support the futures complex, the market could be in for a rallying week ahead so long as demand remains supportive and feedlot managers actively work to keep the market as high as possible. New showlists appear to be mixed: higher in Texas, but lower in Kansas and Nebraska/Colorado.
Last week Southern live cattle traded anywhere from $184 to $190, but mostly at $185, which is just $1.00 lower than the previous week's weighted average. Northern dressed cattle traded from $298 to mostly $301, which is $1.00 lower than the previous week's weighted average.
Boxed beef prices are higher: choice up $1.18 ($317.93) and select up $0.08 ($301.22) with a movement of 49 loads (23.30 loads of choice, 9.16 loads of select, zero loads of trim and 16.12 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is off to an aggressive start for the week as traders are pushing the nearby contracts anywhere from $3.00 to $4.00 higher. August feeders are up $4.12 at $259.05, September feeders are up $4.25 at $260.10 and October feeders are up $4.02 at $260.47. The first big video auction sale of the summer, Superior's Corn Belt Classic, is currently underway and is cataloged to sell close to 160,000 head by Tuesday. It's too early in the sale to get an accurate feel for prices and weighted averages, but a higher trend in the futures market can't be hurting the sale any.
LEAN HOGS:
The lean hog complex is trading mostly lower as the market waits to see what demand surfaces this week. Midday pork cutout values are higher, but traders want to see steady, stable demand, not just a $10.86 price jump in the belly which consequently then affects the carcass prices. July lean hogs are up $0.10 at $93.60, August lean hogs are down $0.60 at $91.07 and October lean hogs are down $0.67 at $78.42. And with the cash hog market not lending any support again early this week, traders have little positive news to celebrate at this point in the hog sector.
The projected CME Lean Hog Index for 6/7/2024 is down $0.23 at $91.52, and the actual index for 6/6/2024 is down $0.17 at $91.75. Hog prices are unavailable on the Daily Direct Morning Hog Report because of confidentiality issues. However, we can see 675 head have traded and the market's five-day rolling average now sits at $86.94. Pork cutouts total 158.61 loads with 134.06 loads of pork cuts and 24.55 loads of trim. Pork cutout values: up $2.46, $103.37.
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