GENERAL COMMENTS:
The biggest news Thursday morning for the livestock complex is the advancement in the fed cash cattle market and the wild rally traders have pushed because of the fundamental support. Just moments ago a thin movement of cattle were sold in Kansas at $230, which is $8.00 higher than last week's weighed average. July corn is up 3/4 cent per bushel and July soybean meal is up $1.10. The Dow Jones Industrial Average is up 129.36 points and NASDAQ is up 92.66 points.
Thursday's export report shared that beef net sales of 9,000 metric tons (mt) for 2025 were down 39% from the previous week and 27% from the prior 4-week average. The three largest buyers were South Korea (4,500 mt), Japan (2,800 mt) and Canada (1,000 mt). Pork net sales of 36,400 mt for 2025 were up 19% from the previous week and 25% from the prior 4-week average. The three largest buyers were China (12,700 mt), Mexico (12,000 mt) and Japan (3,000 mt).
LIVE CATTLE:
Well, were you expecting that?! It was assumed traders would continue to support the live cattle complex so long as fundamental support was sufficient -- and obviously traders deemed the $3.00 to $8.00 jump in Southern live cattle prices Wednesday afternoon as enough support to justify another impeccable rally throughout the futures complex. June live cattle are up $3.76 at $222.07, August live cattle are up $3.80 at $216.15 and October live cattle are up $2.65 at $213.25. What's so significant about this rally is currently the spot August contract has blown past the market's previous resistance threshold and it's looking like the contract could carve out a new contract high this afternoon if traders keep this momentum through closing. Bids are currently on the table in Texas at $228 and in Nebraska at $235, and just moments ago a thin movement of cattle were sold in Kansas at $230, which is $8.00 higher than last week's weighed average. But Wednesday afternoon Southern live cattle traded at $225 to $228 which is $3.00 to $6.00 higher than last week's weighted average.
Boxed beef prices are mixed: choice up $2.39 ($367.55) and select down $0.74 ($355.98) with a movement of 64 loads (38.49 loads of choice, 11.79 loads of select, 9.77 loads of trim and 4.42. loads of ground beef).
FEEDER CATTLE:
Upon seeing the live cattle contracts launch higher, the feeder cattle complex couldn't stand the idea of being left out and so traders quickly followed suit and sent the feeder cattle contracts rallying as well. August feeders are up $4.22 at $308.10, September feeders are up $3.87 at $307.02 and October feeders are up $3.62 at $304.90. Demand continues to be impeccable in the feeder cattle complex as the market remains short of supply and buyers want to have pens of cattle to market later this fall when prices are still projected to be record-breaking strong.
LEAN HOGS:
The lean hog complex is trading mixed as with the market's fundamental support this morning showing pork cutout values slightly higher but cash prices are lower. July lean hogs are down $0.35 at $104.70, August lean hogs are down $0.62 at $106.82. Until traders see full support from the market's fundamentals, they'll likely remain hesitant to trade the futures contracts any higher.
The projected CME Lean Hog Index for 6/4/2025 is up $0.82 at $97.57, and the actual index for 6/3/2025 is up $0.41 at $96.75. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.74 with a weighted average price of $99.62, ranging from $95.00 to $103.00 on 1,711 head and a five-day rolling average of $98.99. Pork cutouts total 123.76 load with 108.29 loads of pork cuts and 15.47 loads of trim. Pork cutout values: up $0.87, $107.49.
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