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DTN Midday Livestock Comments          05/28 11:34

   Traders Respond Positively to Friday's Cattle on Feed Report 

   The cattle contracts are again trading higher Tuesday as traders take note 
of Friday's positive Cattle on Feed report and the higher midday boxed beef 
prices. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The cattle complex is trading higher into Tuesday's noon hour as the market 
is currently well supported by Friday's encouraging Cattle on Feed report and 
by continued beef demand. Meanwhile, the lean hog complex is trading mixed as 
the nearby contracts continue to question demand in the immediate future while 
the deferred contracts inch modestly higher. July corn is down 2 3/4 cents per 
bushel and July soybean meal is down $9.90.

   The Dow Jones Industrial Average is down 173.68 points.

LIVE CATTLE:

   The live cattle complex is trading modestly higher into Tuesday's noon hour 
as traders are encouraged by Friday's strong Cattle on Feed report and the 
continued support of higher boxed beef prices. June live cattle are up $0.45 at 
$184.15, August live cattle are up $0.32 at $181.45 and October live cattle are 
up $0.32 at $184.27. It's still too early to know what this week's cash cattle 
trade is going to amount to, but if beef demand continues to trend higher, 
there's a chance the cash cattle market could trade higher again this week.

   Last week Southern live cattle traded for mostly $187, which is $1.00 higher 
than last week's weighted average; Northern dressed cattle traded for mostly 
$302 to $305, which is steady to $5.00 higher than the previous week's weighted 
average.

   Boxed beef prices are higher: choice up $2.06 ($312.51) and select up $1.49 
($303.21) with a movement of 52 loads (30.37 loads of choice, 10.06 loads of 
select, zero loads of trim and 11.54 loads of ground beef).

FEEDER CATTLE:

   Between last Friday's bullish Cattle on Feed report, to the slight decline 
in corn prices, the feeder cattle complex has all the support it needs to trade 
higher. August feeders are up $3.92 at $264.15, September feeders are up $3.50 
at $265.25 and October feeders are up $3.25 at $265.80. The market is currently 
thriving as it's in what seems to be a "perfect storm" as demand continues to 
drive boxed beef prices higher and feeder cattle interest in sale barns across 
the country remains incredibly strong. The market is just three short weeks out 
from seeing what the first big online feeder cattle sales are going to do for 
the year and, at this point, higher prices seem likely.

LEAN HOGS:

   Even though midday pork cutout values are noticeably higher, the lean hog 
complex continues to trade mixed with the market's nearby contracts lower while 
the deferred months trade mildly higher. Traders and pork producers both like 
to see the midday carcass price higher, but after a long stretch of weak pork 
demand, traders want to see continued pork interest at the meat counter before 
they'll begin to believe that demand is substantiating. Not to mention, the 
carcass price is being heavily influenced by the $10.15 rally in the belly. 
June lean hogs are down $0.25 at $94.00, July lean hogs are down $0.55 at 
$96.70 and August lean hogs are down $0.77 at $96.12.

   The projected CME Lean Hog Index for 5/24/2024 is down $0.37 at $91.26, and 
the actual index for 5/23/2024 is down $0.14 at $91.63. Hog prices are 
unavailable on the Daily Direct Morning Hog Report due to confidently. However, 
we can see that only 205 head have traded and the market's five-day rolling 
average now sits at $86.97. Pork cutouts total 154.10 loads with 123.31 loads 
of pork cuts and 30.80 loads of trim. Pork cutout values: up $4.23, $103.37.

   ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

    

    




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