DTN Midday Livestock Comments 06/14 11:41
Boxed Beef Prices Scaling Lower
Feeder cattle futures are off to a good start with the corn market enduring
a steep regression through Monday's trade.
DTN Livestock Analyst
The corn market's lower regression has granted the cattle contracts an
opportunity to rally into the new week and they aren't looking back. The lean
hog market isn't as charged to burst into Monday's trade, but if the market can
prove that demand is still ample then there could be higher to steady prices
obtained later in the week. July corn is down 22 1/4 cents per bushel and July
soybean meal is down $8.50. The Dow Jones Industrial Average is down 228.68
points and NASDAQ is up 53.97 points.
Thanks to the support roaring in the feeder cattle market, the live cattle
contracts are rallying in its shadow. June live cattle are up $0.45 at $119.15,
August live cattle are up $0.97 at $120.97 and October live cattle are up $0.85
at $126.62. Cattle enthusiasts have a lot to manage again this week with boxed
beef prices now veering lower and plenty of questions circulating about what
the cash cattle market's fate will be. New showlists appear to be mixed, higher
in Nebraska/Colorado, but lower in Texas and Kansas.
Last week's negotiated cash cattle trade totaled 98,467 head. Of that 67%
(66,451 head) were bought with delivery for the next two upcoming weeks while
the remaining 33% (32,016 head) were bought for the following 15- to 30-day
Boxed beef prices are lower: choice down $1.53 ($336.03) and select down
$0.54 ($304.67) with a movement of 39 loads (21.37 loads of choice, 4.85 loads
of select, 7.04 loads of trim and 5.63 loads of ground beef).
The corn market's plunge is a fine sight for the feeder cattle contracts.
With less pressure from corn, the feeder cattle contracts have been rallying
all throughout Monday's trade with advancements well above $2.00 in most of the
contracts. Cow-calf producers look at the market's strength and hope it lasts
throughout the week and has a positive effect on Superior's Corn Belt Classic
Sale this week in Sioux City, Nebraska. The sale expects right around 51,000
head and cattlemen from all across the country will be watching its lots trade
as they hope to better understand what could lie ahead for the feeder cattle
market. August feeders are up $2.50 at $153.67, September feeders are up $2.47
at $156.00 and October feeders are up $2.50 at $157.97.
The hog market hasn't been flattered by a landslide of trader interest or
support, but we knew it may take the market some time before it was able to
interest traders again this week. July lean hogs are down $1.90 at $118.07,
August lean hogs are down $1.95 at $115.00 and October lean hogs are down $1.02
at $95.57. The cash hog market was highly sought-after last week as
market-ready supplies of hogs are thin, and even through Monday morning's
report packers were back buying in the market. Monday's slaughter is estimated
to be around 482,000 head which would be a sizeable kill for the market. In the
days ahead it will continue to be important to monitor both slaughter speeds
and cutout values.
The projected CME Lean Hog Index for 6/11/2021 is up $1.05 at $121.91 and
the actual index for 6/10/2021 is up $0.95 at $120.86. Hog prices are higher on
the National Direct Morning Hog Report, up $0.80 with a weighted average of
$110.69, ranging from $130.00 to $107.77 on 4,016 head and a five-day rolling
average of $110.86. Pork cutouts total 155.19 loads with 139.98 loads of pork
cuts and 15.21 loads of trim. Pork cutout values: down $2.56, $129.98.
ShayLe Stewart can be reached at firstname.lastname@example.org
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