DTN Midday Livestock Comments 07/05 11:46

DTN Midday Livestock Comments 07/05 11:46 Southern Live Cattle Trade Steady at $190 As the market nears Friday's noon hour, Southern live cattle are trading at $190 which is steady with last week's weighted average but still no Northern trade has developed yet. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: Both the live cattle and feeder cattle markets are trading higher into Friday's noon hour as the market applauds feedlots' efforts in marketing their showlists this week. Southern live cattle are currently trading at $190 which is steady with last week's weighted average and still no dressed trade has developed. December corn is up 5 1/2 cents per bushel and December soybean meal is up $4.30. The Dow Jones Industrial Average is down 66.95 points. Friday's export report shared that beef net sales of 15,500 mt for 2024 were down 8% from the previous week but up 6% from the prior 4-week average. The three largest buyers were China (4,000 mt), Japan (3,900 mt) and Mexico (1,800 mt). Pork net sales of 59,100 mt for 2024 -- a marketing year high -- were up 51% from the previous week and 96% from the prior 4-week average. The three largest buyers were Mexico (34,600 mt), China (9,500 mt) and Japan (3,700 mt). LIVE CATTLE: Some may be tempted to think of today's steady trade in the Southern plains as boring following the exciting firework shows that were main attractions all across the country last night, but any time the market can keep prices steady on a Friday following a major holiday is a win in my books. If the market were in a scenario where packers didn't need cattle, it would be very likely that they would have done their business earlier in the week and not even bothered to show up and bid cattle on the Friday following a major holiday. So the fact that packers are back to work today as opposed to enjoying an extra-long weekend shows us just how short bought they are and thankfully feedlot managers noted this as well. Some light trade has only developed in the South at $190 which is mostly steady with last week's weighted average. No trade has developed yet in the North. Asking prices for cattle in the Southern plains remain firm at $192 and in the North at $315. August live cattle are up $2.22 at $188.15, October live cattle are up $1.65 at $188.50 and December live cattle are up $1.12 at $189.97. Boxed beef prices are higher: choice up $1.02 ($330.86) and select up $1.62 (306.00) with a movement of 53 loads (40.92 loads of choice, 7.33 loads of select, zero loads of trim and 4.79 loads of ground beef). FEEDER CATTLE: The feeder cattle complex was trading mostly lower earlier this morning but as the market nears Friday's noon hour, the bearish noting of nearby corn prices trading $0.05 to $0.06 higher seems to be being overlooked as the fed cash cattle market is seeing prices trade steady. August feeders are steady at $263.32, September feeders are up $0.30 at $263.92 and October feeders are up $0.55 at $264.07. It's likely that the market keeps with this steady/somewhat higher tone as traders are noting the strong fundamental support of the cash cattle market which will likely be the market's biggest supporting factor throughout the day. LEAN HOGS: The lean hog complex is trading mixed which on any other day (which wasn't the day following the Fourth of July holiday) I believe the market would be trading higher as this morning's export report touted a new marketing year high of 59,100 metric tons. But given that the market is moving slowly as there simply aren't as many people trading in today's marketplace as normal, the complex is again trading mixed. July lean hogs are up $0.62 at $90.37, August lean hogs are down $0.17 at $89.65 and October lean hogs are down $0.55 at $73.62. It's likely that the market keeps this weak-hearted tone through the day's end as there isn't much action playing out through today's markets. The projected lean hog index for 7/4/2024 is down $0.25 at $89.20, and the actual index for 7/2/2024 is up $0.14 at $89.45. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.72 with a weighted average price of $89.48, ranging from $83.00 to $93.00 on 1,896 head and a five-day rolling average of $89.86. Pork cutouts total 168.62 loads with 152.38 loads of pork cuts and 16.24 loads of trim. Pork cutout values: up $3.22, $96.85. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.