DTN Midday Livestock Comments 07/03 11:43

DTN Midday Livestock Comments 07/03 11:43 Traders Favor the Cattle Contracts Wednesday As the market nears Wednesday's noon hour, both the live cattle and feeder cattle contracts are trading higher as traders believe the market's strong fundamentals could keep cash prices at least steady again this week. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: Both the live cattle and feeder cattle contracts are trading higher as the market anxiously waits to see what happens this week in the cash sector. Meanwhile, the lean hog complex is mixed as traders juggle the market's varying fundamental signals. December corn is down 1 1/2 cents per bushel and December soybean meal is up $1.10. The Dow Jones Industrial Average is down 60.60 points. LIVE CATTLE: Even with midday boxed beef prices slightly lower, the live cattle complex is driving its ship higher as traders continue to find excellent support from a wide array of market fundamentals. A few bids are currently on the table in parts of Nebraska and Kansas, but still no cattle have traded. Asking prices are just beginning to be released and feedlots in the South are asking $192 and Northern feedlots are asking $315. Bids in Kansas are currently being shown at $186 to $188 and bids in Nebraska sit at $308 to $310. It's a tough call to say whether any developments in the cash market will surface later Wednesday afternoon, because more than anything the question remains: How desperately do packers need cattle? And if cattle aren't sold later Wednesday, will packers come back to the table on Friday or simply wait to buy more cattle next week? Those are questions that only time and the market can answer. August live cattle are up $0.47 at $185.57, October live cattle are up $0.67 at $186.32 and December live cattle are up $0.65 at $188.30. Boxed beef prices are lower: choice down $0.70 ($329.69) and select down $0.12 ($306.36) with a movement of 44 loads (25.11 loads of choice, 10.98 loads of select, zero loads of trim and 7.93 loads of ground beef). FEEDER CATTLE: The feeder cattle complex is again trading higher as the market adds another leg up on top of what Tuesday accomplished. Between the added support of the live cattle contracts trading higher amid slightly lower corn prices, feeders are trading higher with ease heading into Wednesday's noon hour as fundamentally the market is incredibly well supported. August feeders are up $1.95 at $263.05, September feeders are up $1.55 at $262.87 and October feeders are up $1.20 at $262.65. LEAN HOGS: The lean hog complex continues to chop modestly sideways in its current trading range as the market continues to get mixed fundamental signs. Truthfully, I'm surprised to see cash hog prices up at all Wednesday morning following Tuesday's big cash purchases. Tuesday afternoon's USDA reports shared that packers purchased 14,713 head, which is quite odd; a normal big movement in the cash market is closer to 5,000 to 6,000 head. So following Tuesday's big purchase, I expected the rest of the week to see little to no cash interest from packers. But on the less-supportive side of the coin, pork cutout values continue to trail lower, which never helps comfort the futures complex. July lean hogs are up $0.15 at $89.40, August lean hogs are down $0.35 at $89.42 and October lean hogs are down $0.60 at $73.67. The projected CME Lean Hog Index for 7/2/2024 is up $0.14 at $89.45 and the actual index for 7/1/2024 is up $0.14 at $89.31. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.27 with a weighted average price of $90.20, ranging from $83.00 to $93.00 on 1,237 head and a five-day rolling average of $89.48. Pork cutouts total 138.29 loads with 127.82 loads of pork cuts and 10.47 loads of trim. Pork cutout values: down $0.57, $93.75. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.