GENERAL COMMENTS:
It's been a peculiar day for the livestock futures as the livestock market itself hasn't changed, but the external pressure that's looming has changed the tone for livestock enthusiasts. Cash cattle bids are currently on the table, but feedlots seem to want to wait the week out for potentially even better prices! Stay tuned because the cash cattle market is fixing to be wild again this week. July corn is down 1 1/2 cents per bushel and July soybean meal is up $5.90. The Dow Jones Industrial Average is up 69.83 points.
LIVE CATTLE:
Even though the cash cattle market has laid the groundwork for a higher market again this week, traders are anxious as they yield to external pressures and patiently wait for more cattle to trade. There's been another light round of cattle traded in Nebraska at $190, which is $4.00 higher than last week's weighted average; dressed deals have been marked $300, which is $10.00 higher than last week's weighted average, but that was only on a thin sampling. Bids are being offered up throughout the countryside, but largely feedlots seem to want to wait the week out to see just how badly packers need/want their cattle. Asking prices are around $183-plus in the South and $300-plus in the North. June live cattle are up $0.60 at $180.42, August live cattle are down $0.25 at $175.22 and October live cattle are down $0.87 at $177.40.
Boxed beef prices are higher: choice up $2.37 ($323.77) and select up $1.29 ($300.73) with a movement of 76 loads (43.33 loads of choice, 13.50 loads of select, 6.52 loads of trim and 12.15 loads of ground beef).
FEEDER CATTLE:
Even though the nearby corn contracts are trading $0.02 to $0.09 lower and the cash cattle market is barking at new all-time high prices -- the feeder cattle market is also trading lower as outside pressure keeps traders cautious. August feeders are down $1.00 at $242.25, September feeders are down $0.72 at $245.80 and October feeders are down $0.65 at $248.17. The cash cattle market has seen a light sampling of cattle traded, and it's looking like prices are going to be significantly higher again this week. But when trade finally breaks loose, and a large volume of cattle is traded, the feeder cattle market could see some spillover support.
LEAN HOGS:
Even though market fundamentals remain strong, lean hog futures are seeing the same sheepish attitude from traders as the rest of the livestock contracts. June lean hogs are down $0.70 at $87.60, July lean hogs are down $0.97 at $87.35 and August lean hogs are down $0.85 at $83.70. Wednesday's midday softness isn't because of anything that's developed in the hog complex, but instead because of outside pressures that are creating some market distress. So long as cash interest remains strong and pork cutout values can continue to show support, prices may be able to trade higher later Wednesday afternoon or come Thursday -- especially if the market sees an encouraging export sales report.
The projected CME Lean Hog Index for 6/6/2023 is up $1.18 at $83.04, and the actual index for 6/5/2023 is up $0.65 at $81.86. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.83 with a weighted average price of $92.44, ranging from $80.00 to $96.00 on 5,608 head with a five-day rolling average of $87.29. Pork cutouts total 174.64 loads with 153.27 loads of pork cuts and 21.37 loads of trim. Pork cutout values: up $0.21, $85.19.
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