GENERAL COMMENTS:
The livestock complex is trading mostly higher into Tuesday's noon hour as traders are agreeing that the weakened price of corn helps all the livestock markets. The cash cattle market hasn't seen any trade develop yet, and it won't likely see any business until Wednesday or later in the week. July corn is down 11 1/2 cents per bushel and July soybean meal is down $5.30. The Dow Jones Industrial Average is down 81.48 points.
LIVE CATTLE:
The live cattle complex timidly entered Tuesday's market, but with the noon hour approaching, the market is trading mostly higher. No cash cattle business has developed, and the cash market is quiet too with no bids or asking prices being available at this time. The market is hopeful that cash prices will trade at least steady, but with packers now having a foothold in the market with some cattle committed to the deferred delivery option, everyone knows that even steady trade would be an uphill battle for feedlot managers. June live cattle are up $0.22 at $162.65, August live cattle are up $0.55 at $160.62 and October live cattle are up $0.35 at $164.47.
Boxed beef prices are higher: choice up $1.07 ($309.63) and select up $0.93 ($286.05) with a movement of 58 loads (37.44 loads of choice, 11.69 loads of select, zero loads of trim and 8.59 loads of ground beef).
FEEDER CATTLE:
With the corn complex trading a substantial $0.11 to $0.16 lower, the feeder cattle complex is trading higher regardless of what the live cattle complex decided to do. May feeders are up $0.57 at $204.00, August feeders are up $1.02 at $224.12 and September feeders are up $0.95 at $227.60. With corn prices down noticeably on Tuesday, feeder cattle sales could see some encouragement in the countryside this afternoon as buyers love configuring breakevens when feed prices look like they could be cheaper.
LEAN HOGS:
It took the lean hog complex some time, but as the noon hour nears, most of the lean hog contracts are now trading higher. It's encouraging to see more interest in the cash hog market and even though midday pork cutout values are slightly lower, that's not to say that afternoon prices won't stand a chance at closing higher. The biggest determent in midday pork cutout prices being higher is the belly is down $2.01. June lean hogs are up $0.82 at $84.12, July lean hogs are up $1.00 at $86.27 and August lean hogs are up $0.65 at $86.85.
The projected lean hog index for May 6 is up $0.22 at $74.64 and the actual index for May 5 is down $0.12 at $74.42. Hog prices on the Daily Direct Morning Hog Report average $72.56 and are ranging from $65.00 to $77.00 on 5,001 head and a five-day rolling average of $72.23. Pork cutouts total 198.76 loads with 174.62 loads of pork cuts and 24.14 loads of trim. Pork cutout values: down $0.36, $81.58.
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