GENERAL COMMENTS:
The livestock complex is mixed as the market sees both the live cattle and feeder cattle contracts trade lower and the lean hog complex is seeing mixed interest from traders. More than anything, traders seem hesitant to overly support the contracts before seeing what the cash cattle market does and before seeing what Thursday's export report amounts too. July corn is up 5 1/2 cents per bushel and July soybean meal is up $2.90. The Dow Jones Industrial Average is down 4.86 points.
LIVE CATTLE:
The live cattle complex is lower as traders wait to see what the cash cattle market accomplishes later this week. After rallying the market sharply higher Friday afternoon, traders don't want to be over aggressive in trading the complex higher and then potentially see cash cattle prices drift lower later this week. Feedlots are again going to strive to push cash cattle prices higher this week as they know that their window to do so before boxed beef prices seasonally peak and begin to trade lower is dwindling. June live cattle are down $0.22 at $186.82, August live cattle are down $0.45 at $182.35 and October live cattle are down $0.52 at $184.10.
Boxed beef prices are higher: choice up $0.49 ($320.96) and select up $1.36 ($306.18) with a movement of 108 loads (69.28 loads of choice, 17.33 loads of select, 8.48 loads of trim and 13.05 loads of ground beef).
FEEDER CATTLE:
With corn prices $0.04 to $0.05 higher and the live cattle complex lending little to no support currently, the feeder cattle complex is also trading lower. It's a balancing act to manage what's happening in the futures complex compared to what's happening out in the countryside as demand for feeders and calves continues to drive prices higher. But at this point, traders don't seem willing to acknowledge the support that's evident in current feeder cattle sales as they solely want to see what the live cattle contracts do and what this week's cash cattle market does. August feeders are down $1.37 at $259.95, September feeders are down $1.40 at $261.35 and October feeders are down $1.35 at $261.95.
LEAN HOGS:
The lean hog complex is seeing mixed interest from traders as the market's nearby contracts trade slightly lower while the deferred contracts trade mildly higher. It is encouraging to see pork cutout values are slightly higher and no cut is seeing any wild price swing compared to Monday. July lean hogs are down $1.05 at $94.30, August lean hogs are down $0.57 at $91.30 and October lean hogs are down $0.15 at $78.07.
The projected CME Lean Hog Index for 6/17/2024 is down $0.14 at $90.59, and the actual index for 6/14/2024 is down $0.71 at $90.73. Hog prices on the Daily Direct Morning Hog Report average $89.90, ranging from $85.00 to $90.00 on 1,688 head and a five-day rolling average of $87.92. Pork cutouts total 181.89 loads with 165.07 loads of pork cuts and 16.82 loads of trim. Pork cutout values: up $0.04, $98.98.
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