DTN Midday Livestock Comments 06/02 12:11
Cattle Contracts Lower; Lean Hog Contracts Optimistic
Tuesday at midday cattle futures are feeling bearish and lean hog futures
see an opportunity to rally.
DTN Livestock Analyst
Livestock futures have fought some immense resistance Tuesday morning, but
as the day progressed lean hog contracts rallied while cattle contracts remain
suppressed. July corn is up 3/4 cent per bushel and July soybean meal is up
$0.60. The Dow Jones Industrial Average is up 132.31 points and NASDAQ is down
Live cattle futures are notably lower in nearby contracts and modestly lower
in deferred. June live cattle are down $2.05 at $96.25, August live cattle are
down $1.22 at $97.75 and October live cattle are down $0.72 at $100.65. A light
round of cash cattle trade developed Tuesday morning in eastern Nebraska where
a regional packer bought dressed cattle for $178 with delivery set for June 15.
Asking prices are $118 to $120-plus in the South and $190-plus in the North. As
trade is expected to trickle in throughout the week, it will be interesting to
see if delivery dates on most of the cattle purchases are for later or if
packers want the cattle now.
Monday afternoon there was a light round of trade reported in Nebraska and
Iowa. Dressed cattle sold for $178 to $187, mostly at $187, which is roughly
steady to $3.00 lower than last week's weighted average.
Boxed beef prices are lower: choice down $18.79 ($322.36) and select down
$21.31 ($295.52) with a movement of 65 loads (34.19 loads of choice, 16.65
loads of select, 11.40 loads of trim and 2.70 loads of ground beef).
Feeder cattle futures are lower Tuesday with greatest resistance in nearby
contracts. August feeder cattle are down $1.77 at $134.35, September feeder
cattle are down $1.27 at $135.92 and October feeder cattle are down $1.05 at
$136.72. For cattle selling in the countryside, Tuesday's weakness shouldn't
crater the recent momentum as the market has had a commendable rally over the
last week and fat cattle are still selling within last week's price range.
Lean hog futures have been pressured over fears that China could stop
purchasing ag products, which would greatly affect the lean hog market as the
U.S. sits on an overabundance of hogs. But seeing export reports that China
bought soybeans for the 2020/2021 marketing year Tuesday morning lightens some
of that stress. June lean hogs are down $1.45 at $53.15, July lean hogs are up
$0.12 at $55.27 and August lean hogs are up $0.85 at $55.95.
The projected lean hog index for 6/1/2020 is down $0.73 at $59.23 and the
actual index for 5/29/2020 is down $1.29 at $59.96. Hog prices are unavailable
on the National Direct Morning Hog Report due to confidentiality. Pork cutouts
total 307.66 loads with 290.11 loads of pork cuts and 17.55 loads of trim. Pork
cutout values: down $2.04, $79.00.
ShayLe Stewart can be reached firstname.lastname@example.org
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