GENERAL COMMENTS:
Wednesday has thus far been a fruitful day for the livestock complex as all three of the markets are trading higher into the noon hour. Still no cash cattle trade has developed, but asking prices are noted in the South at $192-plus. July corn is down 3/4 cent per bushel and July soybean meal is down $4.20. The Dow Jones Industrial Average is up 35.69 points.
LIVE CATTLE:
At the week's midpoint, traders have finally decided to jump into action and are fully supporting the live cattle complex. Most nearby contracts are trading well over $1.00 higher and the deferred contracts aren't far behind. August live cattle are up $1.42 at $185.85, October live cattle are up $1.37 at $185.72 and December live cattle are up $1.20 at $187.35. Still, no cash cattle trade has developed, but it's likely the board's higher tone will help feedlots hold the market at least steady, if they're not able to push prices higher, which isn't out of the question either. Asking prices are noted in the South at $192 to $194 but are not yet established in the North. Trade will likely be delayed until Friday, as feedlots have their sights set on higher prices.
Boxed beef prices are lower: choice down $0.44 ($322.95) and select down $0.94 ($304.32) with a movement of 75 loads (56.17 loads of choice, 10.90 loads of select, zero loads of trim and 7.62 loads of ground beef).
FEEDER CATTLE:
Upon seeing the corn complex trading lower and seeing the live cattle contracts trading fully higher, feeders are fearlessly charging into Wednesday's noon. With full support from the futures complex, the market currently has all the puzzle pieces it needs to lock in a higher tone as fundamentally demand remains incredibly strong, which is evidenced by Tuesday's CME Feeder Cattle Index of $257.90. August feeders are up $2.00 at $261.05, September feeders are up $1.92 at $262.00 and October feeders are up $1.80 at $262.40.
LEAN HOGS:
Even the lean hog complex is rallying into Wednesday's noon hour, which is refreshing after seeing the complex pressured earlier in the week. Midday pork cutout values are higher, mostly stemming from the big gains in the belly; but at this point traders will take any encouraging news they can come by. Thursday will be a big hitting day for the hog complex as the market will be quick to look at export sales and will wait later in the day to receive the quarterly Hogs and Pigs report. July lean hogs are up $0.65 at $89.65, August lean hogs are up $2.07 at $88.82 and October lean hogs are up $1.52 at $75.12.
The projected CME Lean Hog Index for 6/25/2024 is up $0.07 at $89.92, and the actual index for 6/24/2024 is down $0.05 at $89.85. Hog prices are higher on the Daily Direct Morning Hog report, up $0.98 with a weighted average price of $88.74, ranging from $83.00 to $90.00 on 3,155 head and a five-day rolling average of $87.36. Pork cutouts total 137.55 loads with 117.41 loads of pork cuts and 20.14 loads of trim. Pork cutout values: up $2.21, $97.52.
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