DTN Midday Livestock Comments 06/29 11:39
Northern Feedlots Push Packers for More
The cash cattle market has see some sales develop in the South, but thus far
the North hasn't been willing to peddle cattle for steady money.
DTN Livestock Analyst
It's an important day for the livestock complex as the cash cattle traders
are battling out this week's market, and the hog complex is anxiously waiting
for Wednesday afternoon's Quarterly report. The South has seen cattle trade at
$138 which is steady to $1.00 lower, but so far, the North hasn't budged on
their want to push prices higher again this week. December corn is down 4 1/2
cents per bushel and July soybean meal is up $8.90. The Dow Jones Industrial
Average is down 30.53 points.
Once again Southern feedlots have begun to sell their week's supply of
cattle, but the North isn't willing to compromise and take these steady prices.
Northern feedlots are keenly aware of how thin supplies are in their region,
and they seem to be unwilling to squander this opportunity to push the market
higher as they hold substantial leverage in the market right now. Some Southern
cattle have sold for $138 in Texas and Kansas, which is steady to $1.00 lower,
and bids are being offered in Nebraska at $148 but feedlots aren't biting at
that offer. The board isn't lending any support as it continues to fall lower
and pressure nearby support. August live cattle are down $0.45 at $132.35,
October live cattle are down $0.40 at $139.00 and December live cattle are down
$0.55 at $144.70.
The Fed Cattle Exchange Auction held Wednesday reported 10 lots, totaling
1,628 head of cattle, all listings were for Texas. Only 1 lot (265 head) sold
Boxed beef prices are lower: choice down $1.59 ($265.55) and select down
$1.98 ($241.33) with a movement of 56 loads (30.48 loads of choice, 15.97 loads
of select, 0.02 loads of trim and 9.69 loads of ground beef).
The quite nature of this week's cash cattle market has left the feeder
cattle market to fend for itself while the corn complex scraps to regain some
ground. The market's pressure comes from seeing the July corn contract trade
confidently $0.12 higher, but the rest of the nearby corn contracts are
steadily trading $0.02 to $0.03 lower into the afternoon. Thankfully buyers
have continued to support this week's market in the countryside as they know
that most sales will be shut down next week for the 4th of July holiday, and if
they want to get cattle bought before the middle of July, now's the time.
August feeders are down $0.97 at $170.82, September feeders are down $1.20 at
$173.75 and October feeders are down $1.25 at $176.37.
The lean hog market is again seeing mixed interest from traders as the
market's nearby contracts fall slightly lower, but the deferred months of 2022
trend higher into the 2023 contracts. July lean hogs are down $0.52 at $109.40,
August lean hogs are down $0.20 at $103.62 and October lean hogs are up $0.30
at $90.50. it's been a tough week for the market thus far with both processing
speeds waning and pork cutout values trending lower. The market is hopeful that
Wednesday afternoon's Quarterly Hogs and Pigs report will help bring back
interest into the market, but time will tell.
The projected lean hog index for June 28 is down $0.38 at $111.24, and the
actual index for June 27 is up $0.27 at $111.62. Hog prices are higher on the
Daily Direct Morning Hog Report, up $5.32 with a weighted average of $119.86,
ranging from $112.50 to $125.00 on 7,640 head and a five-day rolling average of
$118.13. Pork cutouts total 148.30 loads with 135.22 loads of pork cuts and
13.08 loads of trim. Pork cutout values: up $4.91, $110.38.
ShayLe Stewart can be reached firstname.lastname@example.org
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