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DTN Midday Livestock Comments 05/09 11:41
Lackluster Tones Draw Livestock Contracts Lower
No cash cattle trade has developed, and no bids are being offered currently.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
It's been a lackluster, dreary day for the livestock complex as all three of
the livestock markets are trading lower thanks to a lack of demand. No cash
cattle trade has developed yet, but packer interest should improve throughout
the afternoon. July corn is down 2 1/2 cents per bushel and July soybean meal
is down $3.10. The Dow Jones Industrial Average is up 160.53 points.
Thursday's export report shared that beef net sales of 12,300 mt for 2024
were down 45% from the previous week and 29% from the prior 4-week average. The
three largest buyers were Japan (4,400 mt), South Korea (1,900 mt) and Mexico
(1,700 mt). Pork net sales of 24,400 mt for 2024 were down 27% from the
previous week and 26% from the prior 4-week average. The three largest buyers
were China (6,900 mt), Japan (3,900 mt) and Canada (3,700 mt).
LIVE CATTLE:
With export sales lousy, boxed beef prices mixed, and still no cash cattle
trade having developed -- it comes as no surprise that the live cattle
contracts are again trading lower. June live cattle are down $0.55 at $175.85,
August live cattle are down $0.50 at $173.72 and October live cattle are down
$0.55 at $176.90. There are no bids currently being offered, but asking prices
remain firm in the South at $186 to $187, and are still not established in the
North. Packer interest could improve throughout the day, but it's also just as
likely that trade is delayed until Friday.
Boxed beef prices are mixed: choice up $0.26 ($296.93) and select down $1.55
($286.70) with a movement of 60 loads (39.44 loads of choice, 10.24 loads of
select, zero loads of trim and 10.12 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is again trailing lower as the market is
desperately looking for support but is coming up short in the form of stronger
boxed beef prices or any positive news yet in the cash cattle market. Yes,
feeder cattle demand remains strong in the countryside and corn prices are
lower -- but traders don't seem to appreciate those factors today. May feeders
are down $1.42 at $238.77, August feeders are down $0.95 at $251.42 and
September feeders are down $1.15 at $252.25.
LEAN HOGS:
With Thursday's export report being less than hoped, and midday pork cutout
values lower, traders have little reason as to why they should trade the
complex higher. June lean hogs are down $0.55 at $98.17, July lean hogs are
down $0.70 at $101.72 and August lean hogs are down $0.72 at $101.00. The
market could regain some hope if Friday's WASDE report is support over the
summer months and shows promise of good consumer demand -- but we'll have to
wait and see how that report shakes out before we count on anything.
The projected lean hog index for 5/8/2024 is steady at $91.28, and the
actual index for 5/7/2024 is up $0.25 at $91.28. Hog prices are lower on the
Daily Direct Moring Hog Report, down $3.62 with a weighted average price of
$88.96, ranging from $87.50 to $92.50 on 1,286 head and a five-day rolling
average of $92.17. Pork cutouts total 127.16 loads with 106.06 loads of pork
cuts and 21.10 loads of trim. Pork cutout values: down $0.59, $98.70.
ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com
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