GENERAL COMMENTS:
The cattle contracts have rebounded from their sluggish tone on Monday and are thankfully trading fully higher into Tuesday's noon hour. The lean hog complex hasn't been as fruitful as traders remain hesitant to overly support that market while demand remains weak. July corn is down 1/4 cent per bushel and July soybean meal is down $3.20. The Dow Jones Industrial Average is down 62.34 points.
LIVE CATTLE:
With the help of continued beef demand, the live cattle complex is backing to rallying and is approaching Tuesday's noon hour fully higher. June live cattle are up $0.72 at $182.75, August live cattle are up $0.32 at $179.17 and October live cattle are up $0.57 at $181.47. No cash cattle trade has developed yet and it's likely that the week's trade is delayed until Thursday or Friday of this week. Packers weren't as aggressive in last week's cash market, and if demand remains strong, they could be pressured into supporting this week's cash market more aggressively as they need to ensure that they have beef to market and sell during peak springtime demand.
Boxed beef prices are higher: choice up $1.22 ($316.82) and select up $2.04 ($305.74) with a movement of 82 loads (57.18 loads of choice, 10.61 loads of select, 6.58 loads of trim and 8.01 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is back to trading higher as the market has thankfully shaken the sluggish nature that Monday's market possessed. It helped too that Monday's CME feeder cattle index closed $2.53 higher at $250.77 -- again signaling just how strong feeder cattle demand is in the countryside. August feeders are up $0.65 at $256.85, September feeders are up $0.27 at $258.15 and October feeders are up $0.35 at $259.20. With the live cattle complex lending support, it's likely that feeders continue with this higher trend through the afternoon and most likely through the day's close.
LEAN HOGS:
Midday pork cutout values may be higher, but the lean hog complex is enduring sharp pressure as the market is currently trading below its support plane. Demand hasn't been sufficient in recent weeks and with there being continued concerns about how demand will fair over the summer -- the complex has little choice but to continue to trade lower. June lean hogs are down $0.65 at $93.02, July lean hogs are down $1.62 at $94.60 and August lean hogs are down $1.52 at $94.10.
The projected lean hog index for 6/3/2024 is up $0.20 at $91.93, and the actual index for 5/31/2024 is up $0.24 at 91.73. Hog prices on the Daily Direct Morning Hog Report are not available due to confidentiality. However, we can see that only 739 head have traded and that the market's five-day rolling average now sits at $87.47. Pork cutouts total 158.90 loads with 147.49 loads of pork cuts and 11.41 loads of trim. Pork cutout values: up $1.26, $102.69.
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