GENERAL COMMENTS:
Thus far it's been a rather slow, and lackadaisical day for the livestock complex as even though the morning's export report was modestly helpful to the hog complex, lean hog prices are trading lower, and with no cash cattle trade having developed, both the live cattle and feeder cattle contracts are trading lower. Bids are currently being offered in Kansas and Nebraska, but with feedlots determined to let the market trade no softer than steady, trade will likely be delayed until Friday at this point. July corn is up 3 1/2 cents per bushel and July soybean meal is up $7.40. The Dow Jones Industrial Average is down 294.79 points.
Thursday's export report shared that beef net sales of 12,000 mt for 2024 were down 17% from the previous week and 28% from the prior 4-week average. The three largest buyers were South Korea (3,300 mt), Japan (3,000 mt) and Canada (1,400 mt). Pork net sales of 30,100 mt for 2024 were up 1% from the previous week but down 1% from the prior 4-week average. The three largest buyers were Mexico (14,000 mt), Japan (4,200 mt) and Colombia (2,600 mt).
LIVE CATTLE:
With the cash cattle market still not having traded, traders are continuing to let the live cattle contracts drift slightly lower. June live cattle are up $0.02 at $183.67, August live cattle are down $0.10 at $178.25 and October live cattle are down $0.40 at $180.65. There are a few bids currently being offered; $185 live in Kansas, $193 live in Nebraska, and $303 dressed in Nebraska, but with feedlots desiring at least steady if not higher prices again this week, they've yet to pull the trigger to let any cattle trade yet today. Asking prices are firm in the South at $187 to $188 but are still not noted for the North. It's most likely that trade waits to develop until Friday as feedlots are determined to keep this week's trade at least steady.
Boxed beef prices are mixed: choice down $0.19 ($317.41) and select up $0.24 ($299.17) with a movement of 59 loads (26.25 loads of choice, 12.50 loads of select, 10.13 loads of trim and 10.09 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is continuing to trade lower as technically speaking, traders are hungry for some support from the live cattle/cash cattle market. Even though the board has been under some pressure as of late, fundamentally the market continues to thrive as buyers are showing continued interest and willingness to support the market at its historically high price point. August feeders are down $1.52 at $256.05, September feeders are down $1.57 at $256.90 and October feeders are down $1.50 at $257.35.
LEAN HOGS:
Even though the morning's export report was relatively supportive, the lean hog complex is continuing to trade lower. It's not helping matters that today's midday pork cutout values are lower, which today is being driven by weaker prices across most of the cuts, not just from a nose-drive in the belly's price. July lean hogs are down $0.67 at $93.02, August lean hogs are down $0.60 at $89.35 and October lean hogs are down $0.50 at $76.55.
The projected lean hog index for 6/12/2024 is up $0.20 at $91.58, and the actual index for 6/11/2024 is up $0.06 at $91.38. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.12 with a weighted average price of 86.96, ranging from $86.00 to $89.00 on 699 head and a five-day rolling average of $86.80. Pork cutouts total 119.18 loads with 104.69 loads of pork cuts and 14.48 loads of trim. Pork cutout values: down $0.46, $98.55.
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