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DTN Midday Livestock Comments 05/14 11:49
Traders Push the Cattle Contracts Higher Again
No bids have surfaced in the cash cattle market, but feedlot managers are
pleased to see the board trading higher.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading mixed as the cattle complex has grabbed
another gear and is trading substantially higher, but the lean hog contracts
continue to trade lower. Still no trade has developed in the fed cash cattle
market. May corn is up 2 1/2 cents per bushel and May soybean meal is steady.
The Dow Jones Industrial Average is down 53.76 points and the NASDAQ is up
145.55 points.
LIVE CATTLE:
The momentum hasn't seized in the live cattle complex as traders break out
full support and push the nearby contracts $1.00 to $2.00 higher into
Wednesday's noon hour, which is a bold move given that boxed beef prices are
lower this morning. Although the market has yet to see what the fed cash cattle
market will do in terms of prices, and aside from the fact that boxed beef
prices are softer this morning, traders continue to seek higher prices in the
live cattle sector. June live cattle are up $1.82 at $218.22, August live
cattle are up $2.50 at $214.15 and October live cattle are up $2.25 at $210.67.
Asking prices of $224 to $225 are noted in the South but asking prices have not
yet been established in the North. It looks like trade will be delayed until
Thursday or Friday.
Boxed beef prices are lower: choice down $0.54 ($349.56) and select down
$0.24 ($334.23) with a movement of 74 loads (46.38 loads of choice, 15.08 loads
of select, 5.07 loads of trim and 7.53 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is following in the live cattle market's direction
as its contracts are also trading fully higher into today's noon hour. But
that's not to say that the feeder cattle market doesn't have enough support of
its own, as just yesterday afternoon the CME feeder cattle index climbed to yet
another new all-time high of $302.40, showing just how strong buyer demand is
in the countryside. May feeders are up $0.35 at $303.17, August feeders are up
$1.07 at $307.07 and September feeders are up $1.20 at $306.22.
LEAN HOGS:
The lean hog complex is currently "tucking its tail and running" from the
market's technical resistance pressure. The complex posted a significant rally
on Tuesday, but without enough fundamental support, the market is back to
trading lower as there simply isn't enough support to conquer the resistance.
June lean hogs are down $0.65 at $98.85, July lean hogs are down $0.47 at
$102.72 and August lean hogs are down $0.30 at $101.82. Midday pork cutout
values are slightly higher, but traders are still searching for more support.
The projected lean hog index for 5/13/2025 is up $0.46 at $90.77, and the
actual index for 5/12/2025 is up $0.39 at $90.31. Hog prices on the Daily
Direct Morning Hog Report average $92.97, ranging from $88.00 to $97.00 on
1,964 head and a five-day rolling average of $94.31. Pork cutouts total 142.17
loads, with 122.58 loads of pork cuts and 19.59 loads of trim. Pork cutout
values: up $1.12, $98.14.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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