DTN Midday Livestock Comments          05/09 11:41

   Lackluster Tones Draw Livestock Contracts Lower

   No cash cattle trade has developed, and no bids are being offered currently.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   It's been a lackluster, dreary day for the livestock complex as all three of 
the livestock markets are trading lower thanks to a lack of demand. No cash 
cattle trade has developed yet, but packer interest should improve throughout 
the afternoon. July corn is down 2 1/2 cents per bushel and July soybean meal 
is down $3.10. The Dow Jones Industrial Average is up 160.53 points.

   Thursday's export report shared that beef net sales of 12,300 mt for 2024 
were down 45% from the previous week and 29% from the prior 4-week average. The 
three largest buyers were Japan (4,400 mt), South Korea (1,900 mt) and Mexico 
(1,700 mt). Pork net sales of 24,400 mt for 2024 were down 27% from the 
previous week and 26% from the prior 4-week average. The three largest buyers 
were China (6,900 mt), Japan (3,900 mt) and Canada (3,700 mt).

LIVE CATTLE:

   With export sales lousy, boxed beef prices mixed, and still no cash cattle 
trade having developed -- it comes as no surprise that the live cattle 
contracts are again trading lower. June live cattle are down $0.55 at $175.85, 
August live cattle are down $0.50 at $173.72 and October live cattle are down 
$0.55 at $176.90. There are no bids currently being offered, but asking prices 
remain firm in the South at $186 to $187, and are still not established in the 
North. Packer interest could improve throughout the day, but it's also just as 
likely that trade is delayed until Friday. 

   Boxed beef prices are mixed: choice up $0.26 ($296.93) and select down $1.55 
($286.70) with a movement of 60 loads (39.44 loads of choice, 10.24 loads of 
select, zero loads of trim and 10.12 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is again trailing lower as the market is 
desperately looking for support but is coming up short in the form of stronger 
boxed beef prices or any positive news yet in the cash cattle market. Yes, 
feeder cattle demand remains strong in the countryside and corn prices are 
lower -- but traders don't seem to appreciate those factors today. May feeders 
are down $1.42 at $238.77, August feeders are down $0.95 at $251.42 and 
September feeders are down $1.15 at $252.25.

LEAN HOGS:

   With Thursday's export report being less than hoped, and midday pork cutout 
values lower, traders have little reason as to why they should trade the 
complex higher. June lean hogs are down $0.55 at $98.17, July lean hogs are 
down $0.70 at $101.72 and August lean hogs are down $0.72 at $101.00. The 
market could regain some hope if Friday's WASDE report is support over the 
summer months and shows promise of good consumer demand -- but we'll have to 
wait and see how that report shakes out before we count on anything. 

   The projected lean hog index for 5/8/2024 is steady at $91.28, and the 
actual index for 5/7/2024 is up $0.25 at $91.28. Hog prices are lower on the 
Daily Direct Moring Hog Report, down $3.62 with a weighted average price of 
$88.96, ranging from $87.50 to $92.50 on 1,286 head and a five-day rolling 
average of $92.17. Pork cutouts total 127.16 loads with 106.06 loads of pork 
cuts and 21.10 loads of trim. Pork cutout values: down $0.59, $98.70.

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

    

    




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