DTN Midday Livestock Comments 03/24 11:37
Live Cattle and Lean Hogs Find Support Midday Friday
As the market nears the noon hour, both the live cattle and lean hog
contracts are finally trading higher.
DTN Livestock Analyst
Both the live cattle and lean hog markets are trading higher into Friday's
noon hour while the feeder cattle complex is still trading lower due to the
onset of higher corn prices. No more cash cattle trade has developed and it's
looking like the bulk of the week's business is done with. May corn is up 8
cents per bushel and May soybean meal is up $4.70. The Dow Jones Industrial
Average is down 88.55 points.
It's invigorating to see the live cattle contracts trading higher after
enduring yet another bearish week. June live cattle are up $0.95 at $156.77,
August live cattle are up $0.85 at $156.60 and October live cattle are up $0.80
at $160.85. The spot June contract is still trading below the market's 100-day
moving average, but if the market can keep its momentum through closing, taking
out that threshold could be attainable on Monday. No more cash cattle trade has
developed as packers are seeming to have fulfilled their needs for the week.
Some more clean-up trade could develop ahead of the weekend, but it will only
likely be cleanup in its nature. Throughout the week, Northern dressed deals
have been marked at mostly $264 to $265, steady to $1 higher than last week's
weighted averages. Southern live sales were listed at mostly $163, $1 lower
than last week's weighted averages.
Boxed beef prices are mixed: choice down $1.94 ($280.84) and select up $1.18
($270.07) with a movement of 76 loads (60.08 loads of choice, 6.03 loads of
select, zero loads of trim and 9.67 loads of ground beef).
With corn prices trending $0.08 to $0.09 higher, the feeder cattle contracts
have turned red and are trending lower into Friday's noon hour. Even though the
live cattle contracts are trading higher, the live cattle market's support
isn't enough to offset the pressure of the rallying corn complex. April feeders
are down $0.47 at $194.52, May feeders are down $1.17 at $197.42 and August
feeders are down $0.52 at $214.10.
After trading lower for the last week, the lean hog complex has finally
found some support in Friday's market. April lean hogs are up $1.70 at $77.45,
June lean hogs are up $2.20 at $91.57 and July lean hogs are up $2.17 at
$93.55. It's hard to put a rhyme or reason behind why the market has suddenly
come into support, but it has! Part of the market's support could be stemming
from Thursday's strong export report and the stronger pork cutout close.
The projected lean hog index for March 23 is down $0.40 at $76.99 and the
actual index for March 22 is down $0.44 at $77.39. Hog prices are lower on the
Daily Direct Morning Hog Report, down $0.32 with a weighted averaged $76.18,
ranging from $71.00 to $77.50 on 4,535 head and five-day rolling average of
$76.64. Pork cutouts total 135.17 loads with 122.46 loads of pork cuts and
12.71 loads of trim. Pork cutout values: up $1.26 $81.56.
ShayLe Stewart can be reached email@example.com
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