DTN Midday Livestock Comments 06/27 11:36
Cattle Take to Monday's Market With Positive Tones
Heading into Monday's afternoon, feedlots will be tallying their showlists,
though no packer interest is likely to develop until later in the week.
DTN Livestock Analyst
The cattle contracts are trading mostly higher into Monday's afternoon as
the corn market continues to plummet lower and the market's fundamental,
long-term outlook is undeniably optimistic. However, the lean hog contracts
seem to be buying themselves time as the market anxiously waits for Wednesday's
Quarterly report. July corn is down 7 3/4 cents per bushel and July soybean
meal is up $9.10. The Dow Jones Industrial Average is up 24.58 points.
The live cattle market is trading mostly higher into Monday's afternoon,
even though the August and October 2022 contracts are showing a bit of push
back. August live cattle are down $0.17 at $133.20, October live cattle are
down $0.02 at $139.72 and December live cattle are up $0.25 at $145.50. The big
question that's on everyone's mind this week is: did packers get enough cattle
bought last week to suffice their needs or will they have to chase cattle again
this week in the cash cattle market? Given that supplies of market-ready cattle
are so thin in the North, it's likely that feedlots will attempt to see higher
prices again this week as Friday's Cattle on Feed report was neutral to
somewhat supportive, and not accept anything less than steady.
Last week's negotiated cash cattle trade totaled 94,598 head. Of that 72%
(68,048 head) were committed for the nearby delivery, while the remaining 28%
(26,550 head) were committed for the deferred delivery.
Boxed beef prices are higher: choice up $4.11 ($269.09) and select up $1.13
($246.15) with a movement of 46 loads (25.13 loads of choice, 9.58 loads of
select, 3.80 loads of trim and 7.70 loads of ground beef).
The feeder cattle market is having a stellar day as the market advances on
weaker corn and higher deferred live cattle prices. August feeders are up $1.55
at $174.05, September feeders are up $1.45 at $176.52 and October feeders are
up $1.42 at $178.50. Receipts have been light in sale barns over the last two
weeks but of the sale barns that have had sales, prices have been strong as the
market is soberly realizing that supplies are going to be thin of cattle moving
forward after this summer.
It's going to be a big week for the lean hog complex as the market anxiously
awaits Wednesday's Hogs and Pigs report. Until then, it's likely that the
market chops sideways as it seems to be wanting to buy time until the report
gives a clearer understanding of what's to come in the months ahead. It's not
surprising to see the futures market lower Monday morning as both cash hog
prices and pork cutout values are lower to start the day off. July lean hogs
are down $0.12 at $110.80, August lean hogs are down $0.85 at $105.92 and
October lean hogs are down $1.27 at $91.05.
The projected lean hog index for June 24 is up $0.45 at $111.35, and the
actual index for June 23 is up $0.23 at $110.90. Hog prices are lower on the
Daily Direct Morning Hog Report, down $5.70 with a weighted average of $114.23,
ranging from $112.00 to $123.00 on 3,755 head and a five-day rolling average of
$117.39. Pork cutouts total 150.26 loads with 119.16 loads of pork cuts and
31.10 loads of trim. Pork cutout values: down $0.67, $111.53.
ShayLe Stewart can be reached email@example.com
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