GENERAL COMMENTS:
Action in the livestock complex is slow Tuesday as traders note the demand beginning to surface in the hog complex and are careful not to get ahead of themselves in overly supporting the live cattle contracts before seeing what the cash cattle market does. Still, no asking prices have been posted and it's likely the week's trade will be delayed until Thursday or Friday. July corn is down 6 3/4 cents per bushel and July soybean meal is down $7.70. The Dow Jones Industrial Average is down 337.50 points.
LIVE CATTLE:
The live cattle complex is mixed as traders again note and appreciate the continued support of stronger boxed beef prices. Still, traders do not want to support the futures complex in an overdone fashion ahead of knowing what the cash cattle market will do this week. August live cattle are down $0.52 at $184.30, October live cattle are up $0.35 at $184.15 and December live cattle are up $0.07 at $185.87. The June contract is set to expire on Friday and most traders have already made their move into the August contract. No asking prices are noted yet and it's likely the cash cattle market will wait to trade until Thursday at the earliest.
Boxed beef prices are higher: choice up $1.16 ($323.80) and select up $2.09 ($307.16) with a movement of 64 loads (33.47 loads of choice, 15.76 loads of select, 5.06 loads of trim and 9.46 loads of ground beef).
FEEDER CATTLE:
With feeder cattle demand still incredibly strong and the corn complex trading another $0.06 to $0.07 lower this morning, the nearby feeder cattle contracts are mildly higher while the rest of the market is rocked back on its heels, waiting to see what the live cattle contracts and fed cattle market does this week. August feeders are up $0.15 at $259.05, September feeders are up 0.02 at $260.07 and October feeders are down $0.02 at $260.62. It's likely traders will continue to weak-heartedly support the market until there's a better understanding of what exactly the fed cash cattle market will do.
LEAN HOGS:
With midday pork cutout values slightly higher, the lean hog complex is seeing more trader interest in the market's nearby contracts. July lean hogs are up $0.15 at $90.10, August lean hogs are up $0.85 at $87.57 and October lean hogs are up $0.22 at $74.30. The market's biggest limiting factor has been demand, mostly the lack of domestic demand. So, if pork demand begins to improve, traders will likely be more favorable to the lean hog contracts in return.
The projected CME Lean Hog Index for 6/24/2024 is down $0.05 at $89.85, and the actual index for 6/21/2024 is down $0.42 at $89.90. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.29 with a weighted average price of $87.76, ranging from $85.00 to $89.00 on 1,730 head and a five-day rolling average of $86.98. Pork cutouts total 166.74 loads with 142.77 loads of pork cuts and 23.97 loads of trim. Pork cutout values: up $1.21, $99.04.
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