DTN Midday Livestock Comments 07/07 11:35
Cash Cattle Begin to Trade
After waiting what seems like a long time, the cash cattle market has
finally begun to trade.
DTN Livestock Analyst
The cash cattle market has finally begun to see cattle after waiting long
into the week for the market's trend to develop. Northern feedlots are selling
cattle anywhere from $147 to $151, and in the South feedlots are selling cattle
for mostly $137. The feeder cattle market has taken a lower approach to
Thursday's market as the corn market has regained support and is trending
higher. December corn is up 10 3/4 cents per bushel and December soybean meal
is up $9.60. The Dow Jones Industrial Average is up 284.77 points.
The cash cattle market is finally starting to see some interest after
feedlots put up a good fight in deferring the week's business in hopes of
driving prices higher. The Southern plains is seeing cattle sell for mostly
$137 (which is steady to $1.00 lower than last week), and in the North cattle
are selling anywhere from $147 to $151 (which is steady to $1.00 higher than
last week). Given that packers have cattle committed for this week and next,
it's unlikely that this week's volume is very big. August live cattle are up
$0.12 at $134.62, October live cattle are down $0.10 at $139.85 and December
live cattle are up $0.15 at $145.50. Helping bode well for both packers and
feedlots is that the boxed beef market has found some strength. As packers
receive an uptick in the price for meat they're selling to retailers, they'll
likely be somewhat more willing to support the cash market. More cattle should
trade before the day's end.
Boxed beef prices are higher: choice up $0.26 ($268.31) and select up $0.26
($243.19) with a movement of 79 loads (48.62 loads of choice, 22.99 loads of
select, zero loads of trim and 7.19 loads of ground beef).
The feeder cattle contracts are trending lower as the corn market has gained
footing and is now trending higher. August feeders are down $0.95 at $172.35,
September feeders are down $1.05 at $176.02 and October feeders are down $1.12
at $179.25. With the cash cattle market still not having developed a test on
this week's market, the feeder cattle complex has only its own technical and
fundamental support to rely on. Feeder cattle demand throughout the countryside
has been strong as buyers see the premiums in the deferred live cattle market
and hope to capitalize on those higher prices.
The lean hog market is still trending mostly higher as the market is being
fueled by strong pork demand and great interest earlier this week in the cash
market. Cash prices are printing lower in Thursday's midday report which isn't
odd to see after the sizeable jump the market took on Tuesday and Wednesday.
Thankfully to offset the slightly lower cash prices, midday pork cutout values
are higher as retailers continue to restock after the 4th of July run. Watching
how slaughter speeds fare throughout the rest of the week will be crucial as
speeds were weak heading into the 4th of July.
The projected lean hog index for 7/6/2022 is up $0.23 at $110.16, and the
actual index for 7/5/2022 is down $0.65 at $109.63. Hog prices are lower on the
Daily Direct Morning Hog Report, down $1.83 with a weighted average of $119.31,
ranging from $112.00 to $127.00 and on 6,805 head with a five-day rolling
average of $118.46. Pork cutouts total 174.33 loads with 153.88 loads of pork
cuts and 20.45 loads of trim. Pork cutout values: up $1.61, $113.11.
ShayLe Stewart can be reached email@example.com
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