GENERAL COMMENTS:
The lean hog contracts are trading slightly lower as the market anxiously waits to see what this afternoon's Quarterly Hogs and Pigs report shares, but the cattle complex is hopeful that cash cattle prices are going to trade higher again this week, so the nearby live cattle contracts and the entire feeder cattle contracts are trading higher into the noon hour. July corn is down 4 cents per bushel and December soybean meal is up $0.70. The Dow Jones Industrial Average is up 96.32 points.
Thursday's export report shared that beef net sales of 16,700 mt for 2024 were up 13% from the previous week and 17% from the prior 4-week average. The three largest buyers were Japan (4,000 mt), China (4,000 mt) and South Korea (3,500 mt). Pork net sales of 39,200 mt for 2024 were up 83% from the previous week and 25% from the prior 4-week average. The three largest buyers were Mexico (20,200 mt), Japan (5,900 mt) and Canada (4,200 mt).
LIVE CATTLE:
The nearby live cattle contracts continue to grind higher as the market is anxiously tapping its toes, waiting to see what feedlot managers do with this week's cash cattle trade. Asking prices are noted in the South at $192 to $194, and in the North at $315 plus, but still no cattle have traded as packers know that they're currently at the mercy of feedlots given that supplies are so current. Packer demand will likely improve throughout the afternoon, but it's likely that the bulk of the week's trade will be delayed until Friday as feedlots are aiming to advance the market again this week. August live cattle are up $0.27 at $187.02, October live cattle are up $0.30 at $186.42 and December live cattle are up $0.05 at $187.67.
Boxed beef prices are higher: choice up $0.35 ($323.20) and select up $0.04 ($302.90) with a movement of 60 loads (32.92 loads of choice, 16.53 loads of select, zero loads of trim and 10.75 loads of ground beef).
FEEDER CATTLE:
With the market growing more and more confident in the fact that fed cash cattle prices will trade higher again this week, the feeder cattle contracts are trading fully higher into Thursday's noon hour. Between the additional market support that's seeping over from the live cattle contracts and their slightly higher tone to the continued support of tremendous feeder cattle demand in the countryside amid slightly lower corn prices -- feeders are ready for action as the market's horizon is bright and lined with ample support. August feeders are up $0.17 at $261.95, September feeders are up $0.12 at $262.60 and October feeders are up $0.10 at $263.00.
LEAN HOGS:
As the lean hog complex patiently waits for this afternoon's Quarterly Hogs and Pigs report, traders are leery of doing much of anything ahead of seeing what today's report yields. The morning's export report was fruitful however as the week's exports totaled 39,200 metric tons, which is especially encouraging right now as the market is desperate for demand -- in any shape and form. July lean hogs are down $0.70 at $89.20, August lean hogs are down $1.02 at $87.95 and October lean hogs are down $0.72 at $74.65.
The projected lean hog index for 6/26/2024 is down $0.17 at $89.75, and the actual index for 6/25/2024 is up $0.07 at $89.92. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.85 with a weighted average price of $89.59, ranging from $82.00 to $93.50 on 1,568 head and a five-day rolling average of $87.69. Pork cutouts total 121.98 loads with 105.52 loads of pork cuts and 16.46 loads of trim. Pork cutout values: down $2.57, $93.15.
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