DTN Midday Livestock Comments 05/03 11:40
05/03/2024
DTN Midday Livestock Comments 05/03 11:40
Southern Feedlots Hold Out for More Money
Packers have offered bids of $184 in the South, but with feedlot's asking
prices firm at $186 plus, no Southern live cattle have traded yet.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
Both the live cattle and feeder cattle markets are trading higher as the
cash cattle market's higher trend is encouraging to the entire cattle complex.
Southern cattle have yet to trade, but feedlots seem determined to get more
money again this week. July corn is down 1 cent per bushel and July soybean
meal is up $3.30. The Dow Jones Industrial Average is up 436.46 points.
LIVE CATTLE:
With cash cattle prices trending higher and midday boxed beef prices higher
-- it wasn't hard for traders to decide to trade the live cattle contracts
higher. The Southern Plains still hasn't seen any cattle trade, but bids are
currently being offered. Bids of $184 are currently being offered in both Texas
and Kansas, but with feedlots firm in their $186 asking price -- packers are
going to need to get more aggressive in order to get any cattle bought. There
were some cattle traded on Thursday in the North at $295, which is $1.00 higher
than last week's weighted average, but now Northern feedlots have upped their
asking price to $296. June live cattle are up $0.20 at $177.00, August live
cattle are up $0.87 at $174.82 and October live cattle are up $1.00 at $178.37.
Boxed beef prices are higher: choice up $2.02 ($294.92) and select up $0.51
($288.49) with a movement of 59 loads (28.04 loads of choice, 10.64 loads of
select, 7.51 loads of trim and 12.79 loads of ground beef).
FEEDER CATTLE:
With the cash cattle market again seeing higher prices -- the feeder cattle
complex is trading mostly higher into Friday's afternoon. With the big
summertime videos scheduled to begin in about six weeks, feeders find it very
encouraging that cash cattle prices are trending higher which could trickle
down and support upcoming feeder cattle sales. May feeders are up $0.15 at
$243.75, August feeders are down $0.02 at $255.20 and September feeders are up
$0.27 at $256.25.
LEAN HOGS:
The lean hog complex is once again trading lower as the market can't seem to
gain momentum. Yes, midday pork cutout values are higher, but traders seem
unwilling to support the complex ahead of the week's close. Next Friday the
market will receive the latest WASDE report which could help shine light onto
the lean hog market's immediate direction as both production and export
forecasts will be shared for the upcoming months. June lean hogs are down $0.70
at $99.22, July lean hogs are down $0.50 at $103.05 and August lean hogs are
down $0.42 at $101.77.
The projected lean hog index for 5/2/2024 is up $0.04 at $90.96, and the
actual index for 5/1/2024 is up $0.32 at $90.92. Hog prices are higher on the
Daily Direct Morning Hog Report, up $1.10 with a weighted average price of
$90.53, ranging from $87.50 to $95.00 on 1,538 head and a five-day rolling
average of $90.69. Pork cutouts totaled 159.07 loads with 143.98 loads of pork
cuts and 15.09 loads of trim. Pork cutout values: up $1.49, $99.37.
ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com
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