GENERAL COMMENTS:
Tuesday has treated the livestock complex well as both live and feeder cattle futures trade higher; nearby lean hog contracts are higher as well. The feeder cattle market has rolled into what seems like the perfect storm as technically the market has trader interest and fundamentally the market is flush with support from farmer feeders and large feedlots alike. July corn is down 24 cents per bushel and July soybean meal is down $6.20. The Dow Jones Industrial Average is up 549.49 points.
LIVE CATTLE:
Live cattle futures are chopping sideways at the top of last week's trading range as feedlots sit back and wait to see how antsy packers are this week to get cattle bought. Even though the industry sits with record numbers of cattle on feed, thus far the market has had no problem rolling through them and showlists remain incredibly green as carcass weights continue to drop and slaughter speeds run aggressively. Packers were able to get some cattle bought last week for deferred delivery, but it's likely they'll have to be aggressive in this week's market again. June live cattle are down $0.17 at $137.85, August live cattle are up $0.35 at $136.92 and October live cattle are up $0.70 at $143.12. The market has yet to see any bids or asking prices develop.
Last week's negotiated cash cattle market totaled 107,080 head. Of that 73% (78,001 head) were committed for nearby delivery, while the remaining 27% (29,079 head) were committed for deferred delivery.
Boxed beef prices are higher: choice up $2.44 ($268.94) and select up $1.03 ($247.42) with a movement of 58 loads (40.82 loads of choice, 9.94 loads of select, 2.93 loads of trim and 4.77 loads of ground beef).
FEEDER CATTLE:
As the grain complex worries about higher temperatures and little moisture in the extended forecast (July through September), the corn market is plummeting 23 to 31 cents this morning. Consequently, feeders are charging higher. August feeders are up $2.75 at $175.70, September feeders are up $2.82 at $177.62 and October feeders are up $2.67 at $179.20. After last week's dynamite sale at Superior's Corn Belt Classic, Northern Livestock Auction is chomping at the bit anxiously, waiting to sell the calves on their Early Summer Special as the market is sitting sound fundamentally and being supported exceptionally well throughout the futures market.
LEAN HOGS:
Lean hog futures are again seeing support from the nearby contracts while the deferred months trade modestly lower as they fear looming supplies. Next week the market will be given the newest release of the Quarterly Hogs and Pigs report, which should give better insight into what supplies are looking like for the third and fourth quarters of 2022. July lean hogs are up $1.20 at $112.20, August lean hogs are up $1.92 at $109.85 and October lean hogs are up $0.77 at $94.47. To start the week off, both pork cutout values and cash prices are lower at midday but it wouldn't be surprising to see cash prices strengthen as the day trades on as it's already Tuesday and packers need to replenish their inventories.
The projected CME Lean Hog Index for 6/20/2022 is up $1.29 at $110.45 and the actual index for 6/17/2022 is up $0.62 at $109.16. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.13 with a weighted aver of $114.81, ranging from $110.00 to $124.00 on 4,121 head and a five-day rolling average of $115.78. Pork cutouts total 163.92 loads with 157.81 loads of pork cuts and 6.11 loads of trim. Pork cutout values: down $1.41, $110.46.
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