Thursday, June 16, 2022

Thursday Midday Livestock Market Update - Nearby Hog Contracts Rally With Help From Export Data

GENERAL COMMENTS:

It's been a quiet day for the livestock complex as the cattle contracts shift gears and trend lower, but the nearby hog contracts are pushing modest gains. Heading into Thursday afternoon, cattlemen will be closely watching for the latest carcass weight data. July corn is up 11 cents per bushel and July soybean meal is up $10.30. The Dow Jones Industrial Average is down 751.48 points.

LIVE CATTLE:

It's been a quiet and lackluster day for the live cattle market as the spot June contract sees mild support, but the rest of the marketplace is keeping with a lower trend. June live cattle are up $0.20 at $137.75, August live cattle are down $0.45 at $136.35 and October live cattle are down $0.20 at $142.02. Boxed beef prices have seemed to have topped seasonally and will likely keep with their lower trend through July. The cash cattle market hasn't seen any bids renewed at this point and it's likely that the week's business is done with. Throughout the week, live cattle have traded for $136 to $139 (steady to $2.00 higher) and Northern dressed cattle have traded for $223 to $236, but mostly at $230 ($4.00 higher). New carcass weight data will be released Thursday afternoon and it's expected that weights will fall once again.

Beef net sales of 17,400 mt for 2022 were down 2% from the previous week and 12% from the prior four-week average. The three largest buyers were Japan (5,200 mt), China (4,600 mt) and South Korea (3,500 mt).

Boxed beef pries are lower: choice down $1.02 ($267.20) and select down $0.63 ($245.05) with a movement of 65 loads (45.21 loads of choice, 10.04 loads of select, 4.24 loads of trim and 5.72 loads of ground beef).

FEEDER CATTLE:

As the corn market pops a fancy $0.12 to $0.15 rally, the feeder cattle contracts are retreating. August feeders are down $1.97 at $171.30, September feeders are down $1.50 at $173.60 and October feeders are down $1.35 at $175.45. The live cattle market helped the complex trade higher earlier in the week, but as the live cattle futures drift lower and the cash market sits idle, traders aren't too enthused.

LEAN HOGS:

The lean hog complex is once again seeing positive support in its nearby contracts while the deferred months trend lower in hesitation. July lean hogs are up $1.15 at $109.42, August lean hogs are up $1.75 at $106.07 and October lean hogs are up $1.17 at $92.87. Helping the hog market keep its technical push is that both cash prices and pork cutout values are higher. Thursday's export report was rather supportive as the market saw considerable volumes moved and even China was an active buyer this past week.

Pork net sales of 27,600 mt for 2022 were up 65% from the previous week and up 1% from the prior four-week average. The three largest buyers were Mexico (14,700 mt), China (3,800 mt) and Japan (3,700 mt).

The projected lean hog index for June 14 is up $0.44 at $108.57, and the actual index for June 13 is up $0.73 at $108.13. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.21 with a weighted average of $116.85, ranging from $110.00 to $122.00 on 4,770 head and a five-day rolling average of $116.38. Pork cutouts total 100.22 loads with 86.89 loads of pork cuts and 13.34 loads of trim. Pork cutout values: up $4.04, $109.83.




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