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DTN Midday Livestock Comments 05/29 11:47
Weaker Tones Send Livestock Contracts Lower Friday
There's been a thin movement of cattle in the cash market at $256, which is
$4.00 lower than last week's weighted average.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading lower into Friday's noon hour as the market
simply doesn't have enough support to turn the futures higher. There's been a
thin movement of cattle noted in Texas at $256, but otherwise the cash market
hasn't seen much trade either. July corn is down 7 3/4 cents per bushel and
July soybean meal is down $4.60. The Dow Jones Industrial Average is up 380.17
points and NASDAQ is up 98.59 points.
LIVE CATTLE:
The live cattle complex continues to scale lower as the market simply isn't
seeing the level of fundamental support it needs. With the attitude around the
cash market seeming as though prices are going to be lower this week -- and
with midday boxed beef prices lower -- traders don't have enough fundamental
support to justify advancing the contracts. June live cattle are down $1.17 at
$248.57, August live cattle are down $1.42 at $239.57 and October live cattle
are down $1.90 at $230.67. Some light cash cattle trade is being reported in
Texas at $256, which is $4.00 lower than last week's weighted average. A few
more bids are now being offered, but no more sales have been confirmed. Asking
prices are noted in Nebraska at $410 but are not identified in the South. More
trade will need to develop throughout Friday.
Boxed beef prices are lower: choice down $0.26 ($392.06) and select down
$2.26 ($383.32) with a movement of 60 loads (33.07 loads of choice, 8.13 loads
of select, 7.19 loads of trim and 11.49 loads of ground beef).
FEEDER CATTLE:
Upon seeing the live cattle contracts drift lower, the feeder cattle
contracts didn't even attempt to trade higher and are also lower heading into
Friday's noon hour. August feeders are down $4.32 at $348.70, September feeders
are down $4.57 at $345.67 and October feeders are down $4.77 at $342.22. A
lower tone is likely to remain the market's theme through Friday as fundamental
support simply isn't surfacing.
LEAN HOGS:
The lean hog contracts are also trading lower into Friday's noon hour as
traders are merely wiping their hands of the market ahead of the weekend. June
lean hogs are down $0.95 at $96.02, July lean hogs are down $2.05 at $100.07,
and August lean hogs are down $2.05 at $98.87. Yes, midday pork cutout values
are a tick higher -- but at this point it's too little support showing up too
late in the week to make a difference.
The projected CME Lean Hog Index is delayed from the source. Hog prices are
not available right now as the USDA is experiencing technical difficulties and
the report has not been published. Pork cutouts total 314.52 loads with 261.97
loads of pork cuts and 52.55 loads of trim. Pork cutout values: up $0.91,
$100.02.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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