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DTN Midday Livestock Comments 05/14 11:43
Boxed Beef Price Grind Higher
All three of the livestock markets are trading higher as both midday pork
cutout values and boxed beef prices are higher.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading well into Tuesday's noon hour as the market
is seeing ample support in the cattle complex thanks to stronger boxed beef
prices. Seasonal beef demand has been slow to develop, but it's appearing as
though seasonal demand is coming to fruition. July corn is down 3 1/2 cents per
bushel and July soybean meal is up $5.30. The Dow Jones Industrial Average is
down 0.71 points.
LIVE CATTLE:
The market has patiently waited for boxed beef demand to substantiate and
between Monday afternoon's higher close and today's higher prices at midday --
it would appear that seasonal beef demand has kicked into gear. Thankfully the
uptick in boxes has helped propel the live cattle contracts higher too as
traders have been meticulously monitoring beef demand as they would like to
break the market out of its current sideways trading range but needed
fundamental support to encourage that type of move. June live cattle are up
$2.80 at $178.37, August live cattle are up $2.92 at $176.30 and October live
cattle are up $2.50 at $179.32. No news has developed thus far in the cash
cattle market and it's likely that the week's trade is delayed until after
Wednesday.
Boxed beef prices are higher: choice up $4.65 ($303.60) and select up $5.72
($292.90) with a movement of 82 loads (38.24 loads of choice, 12.37 loads of
select, 12.58 loads of trim and 18.99 loads of ground beef).
FEEDER CATTLE:
With boxed beef prices up substantially, the feeder cattle market hasn't
been bashful about trading higher as traders are seeing the support they
desperately were yearning for. May feeders are up $3.67 at $243.05, August
feeders are up $4.77 at $256.10 and September feeders are up $4.77 at $256.85.
It's encouraging to see the market trading about its 100-day moving average, as
this might be the shot of encouragement that the market was searching for as
traders wanted to trade the complex higher but needed fundamental support
before doing so.
LEAN HOGS:
Even the lean hog complex is trading higher as traders are encouraged to see
midday pork cutout values higher -- and not solely because of a wild jump in
the belly but because of steady gains seen across the majority of the cuts.
June lean hogs are up $0.70 at $98.17, July lean hogs are up $0.72 at $100.77
and August lean hogs are up $0.55 at $99.82. The cash hog market still hasn't
seen much interest develop as packers have only vaguely supported the complex,
but interest should improve either later this afternoon or Wednesday.
The projected lean hog index for 5/13/2024 is up $0.07 at $91.29 and the
actual index for 5/10/2024 is down $0.10 at $91.22. Hog prices are unavailable
on the Daily Direct Morning Hog Report due to confidentiality. However, we can
see that 650 head have traded, and that the market's five-day rolling average
now sits at $90.44. Pork cutouts total 139.24 loads with 121.08 loads of pork
cuts and 18.17 loads of trim. Pork cutout values: up $0.33, $102.77.
ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com
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