The Farmers Cooperative Co.

DTN Midday Livestock Comments          05/14 11:43

   Boxed Beef Price Grind Higher

   All three of the livestock markets are trading higher as both midday pork 
cutout values and boxed beef prices are higher.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading well into Tuesday's noon hour as the market 
is seeing ample support in the cattle complex thanks to stronger boxed beef 
prices. Seasonal beef demand has been slow to develop, but it's appearing as 
though seasonal demand is coming to fruition. July corn is down 3 1/2 cents per 
bushel and July soybean meal is up $5.30. The Dow Jones Industrial Average is 
down 0.71 points.

LIVE CATTLE:

   The market has patiently waited for boxed beef demand to substantiate and 
between Monday afternoon's higher close and today's higher prices at midday -- 
it would appear that seasonal beef demand has kicked into gear. Thankfully the 
uptick in boxes has helped propel the live cattle contracts higher too as 
traders have been meticulously monitoring beef demand as they would like to 
break the market out of its current sideways trading range but needed 
fundamental support to encourage that type of move. June live cattle are up 
$2.80 at $178.37, August live cattle are up $2.92 at $176.30 and October live 
cattle are up $2.50 at $179.32. No news has developed thus far in the cash 
cattle market and it's likely that the week's trade is delayed until after 
Wednesday.

   Boxed beef prices are higher: choice up $4.65 ($303.60) and select up $5.72 
($292.90) with a movement of 82 loads (38.24 loads of choice, 12.37 loads of 
select, 12.58 loads of trim and 18.99 loads of ground beef).

FEEDER CATTLE:

   With boxed beef prices up substantially, the feeder cattle market hasn't 
been bashful about trading higher as traders are seeing the support they 
desperately were yearning for. May feeders are up $3.67 at $243.05, August 
feeders are up $4.77 at $256.10 and September feeders are up $4.77 at $256.85. 
It's encouraging to see the market trading about its 100-day moving average, as 
this might be the shot of encouragement that the market was searching for as 
traders wanted to trade the complex higher but needed fundamental support 
before doing so.

LEAN HOGS:

   Even the lean hog complex is trading higher as traders are encouraged to see 
midday pork cutout values higher -- and not solely because of a wild jump in 
the belly but because of steady gains seen across the majority of the cuts. 
June lean hogs are up $0.70 at $98.17, July lean hogs are up $0.72 at $100.77 
and August lean hogs are up $0.55 at $99.82. The cash hog market still hasn't 
seen much interest develop as packers have only vaguely supported the complex, 
but interest should improve either later this afternoon or Wednesday.

   The projected lean hog index for 5/13/2024 is up $0.07 at $91.29 and the 
actual index for 5/10/2024 is down $0.10 at $91.22. Hog prices are unavailable 
on the Daily Direct Morning Hog Report due to confidentiality. However, we can 
see that 650 head have traded, and that the market's five-day rolling average 
now sits at $90.44. Pork cutouts total 139.24 loads with 121.08 loads of pork 
cuts and 18.17 loads of trim. Pork cutout values: up $0.33, $102.77.

   ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

    

    




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