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DTN Midday Livestock Comments 05/16 14:01
Cattle Find Support Following the Last Couple of Days of Weakness
A single bid of $220 is currently on the table in Kansas, but otherwise, the
cash cattle market is quiet.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading mixed into Friday's noon hour as the cattle
contracts are back to trading higher, but the lean hog complex feels exhausted
following Thursday's big jump. No new cash cattle trade has developed at this
point, but some clean-up sales could likely develop ahead of the weekend. July
corn is down 2 1/2 cents per bushel and July soybean meal is down $4.50. The
Dow Jones Industrial Average is up 91.70 points and the NASDAQ is up 36.90
points.
LIVE CATTLE:
Following the last three days of weaker trading, the live cattle complex is
currently trading higher into Friday's noon hour. This could partly be because
of stronger midday boxed beef prices, but then again, it could potentially be a
signal from traders indicating that they've found some technical support in the
marketplace. Anytime demand strengthens in the marketplace, it's a positive
thing for the beef complex. But, before we'll be able to truthfully know how
traders feel about their current position in the market, we'll need to see more
positive technical signs develop. June live cattle are up $1.30 at $212.47,
August live cattle are up $0.97 at $206.82 and October live cattle are up $1.37
at $204.05. The cash cattle market currently has a single bid of $220 on the
table in Kansas, but otherwise, the market hasn't seen any more trade develop.
So far this week, Southern live cattle have traded anywhere from $218 to $220,
which is $1.00 lower to $1.00 higher compared to last week's weighted average.
Northern dressed cattle have traded at mostly $358, which is $2.00 higher than
last week's weighted average. A few more sales could develop here and there,
but largely it's looking like the bulk of this week's business is done with.
Boxed beef prices are higher: choice up $3.18 ($353.08) and select up $3.86
($343.04) with a movement of 76 loads (55.89 loads of choice, 7.35 loads of
select, 3.85 loads of trim and 8.94 loads of ground beef).
FEEDER CATTLE:
With the added support of the live cattle contracts' higher trade, the
feeder cattle contracts are always trading higher into Friday's noon hour. May
feeders are up $1.37 at $297.55, August feeders are up $2.15 at $297.97 and
September feeders are up $1.77 at $296.40. So long as nothing unravels the live
cattle complex, the feeder cattle contracts will likely continue to follow in
the same direction.
LEAN HOGS:
The lean hog complex is trading lower into the day's noon hour following the
big push seen on Thursday. After breaking through the market's resistance at
$100, traders now seem a little skeptical of their bold move and wish that
consumer support was stronger today to back their recent technical advancement.
June lean hogs are down $0.40 at $100.30, July lean hogs are down $0.17 at
$103.95 and August lean hogs are up $0.15 at $103.50.
The projected lean hog index for 5/15/2025 is up $0.24 at $91.26, and the
actual index for 5/14/2025 is up $0.24 at $91.02. Hog prices are unavailable on
the Daily Direct Morning Hog Report because of confidentiality. However, we can
see that only 1,277 head have traded and that the market's 5-day rolling
average now sits at $93.73. Pork cutouts total 172.11 loads, with 156.90 loads
of pork cuts and 15.21 loads of trim. Pork cutout values: down $0.10, $99.62.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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