DTN Midday Livestock Comments 06/24 11:39

DTN Midday Livestock Comments 06/24 11:39 Feeders Trend Lower as Corn Attempts to Regain Some Ground After trading lower throughout the earlier part of the week, the corn complex is now trading higher, which has sent feeders trailing lower. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: Heading into Friday afternoon, the market is waiting to see what Friday's Cattle on Feed report reveals. After months of higher on feed numbers largely driven by drought, there's question as to how on feed numbers can still be this high as showlists in the North are green, carcass weights are declining and throughput has been incredibly strong. July corn is up 9 1/2 cents per bushel and July soybean meal is up $8.30. The Dow Jones Industrial Average is up 630.37 points. LIVE CATTLE: What a week it's been for the live cattle market! While the futures market skates lower thanks to an overall weak commodity market and deliveries driving some longs out of the market, the cash cattle market stayed true to its sober realities and saw cattle trade higher despite the board's weakness in the North. It's easy to get sucked into the emotional roller coaster of the market's minute-by-minute decision making, but as Northern feedlots keenly reminded us all, there's power in keeping with the facts and forgoing the emotion. June live cattle are up $0.20 at $135.45, August live cattle are down $0.22 at $133.67 and October live cattle are down $0.02 at $139.97. The cash cattle market hasn't seen any more trade develop and it's likely that the bulk of the week's business is done with. Throughout the week, Southern cattle have traded for mostly $138 which is steady to $2.00 lower than last week. Northern cattle have ranged anywhere from $230 to $240, mostly at $234 though which is $4.00 higher than last week. Boxed beef prices are higher: choice up $0.45 ($265.11) and select up $0.19 ($245.13) with a movement of 59 loads (30.53 loads of choice, 12.45 loads of select, 6.86 loads of trim and 9.54 loads of ground beef). FEEDER CATTLE: The feeder cattle complex is reacting to a reversal in the corn market's behavior as the corn market rallies $0.11 to $0.19 higher after trading lower throughout the week. The uptick in corn prices has sent the feeder cattle contracts lower and it's likely that the market keeps this trend through closing as the live cattle market isn't lending much support at this point and Friday's Cattle on Feed report is expected to be bearish with potentially record on feed numbers for June 1. August feeders are down $2.27 lower at $172.57, September feeders are down $1.95 at $174.90 and October feeders are down $1.82 at $176.80. LEAN HOGS: After enduring significant losses throughout Thursday's trade, the lean hog contracts are rallying $1.00 to $2.00 higher as pork cutout values trade higher into Friday's afternoon and as the cash hog market sees unexpected support come Friday. July lean hogs are up $2.15 at $110.70, August lean hogs are up $2.87 at $106.55 and October lean hogs are up $1.97 at $92.22. It's likely that Friday's market will close within Thursday's parameters, leaving next week the task of determining what's next. It's likely that the market doesn't make any more significant moves ahead of next week's Quarterly Hogs and Pigs report as the market yearns for reassurance. The projected lean hog index for June 23 is up $0.23 at $110.90 and the actual index for June 22 is down $0.07 at $110.67. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.32 with a weighted average of $119.93, ranging from $112.00 to $125.50 on 6,771 head and a five-day rolling averaged of $117.42. Pork cutouts total 171.57 loads with 152.28 loads of pork cuts and 19.29 loads of trim. Pork cutout values: up $3.21, $112.98. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2022 DTN, LLC. All rights reserved.