DTN Midday Livestock Comments 07/08 11:46

DTN Midday Livestock Comments 07/08 11:46 Traders Enter Market Cautiously Monday Boxed beef prices may be higher again, but traders are keeping a cautious approach when it comes to trading in Monday's market. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is taking an extra cautious approach to this week's start as all three of the livestock markets are trading mostly lower into Monday's noon hour. Traders seem to be looking for continued fundamental support before they do too much more in the futures complex. December corn is down 16 3/4 cents per bushel and December soybean meal is down $11.50. The Dow Jones Industrial Average is down 48.68 points. LIVE CATTLE: Trade in the live cattle complex has been slow and extremely cautious thus far Monday as traders try to grasp what fed cattle demand will look like this week and if boxed beef prices will continue to see the tremendous support they've become used to. August live cattle are down $0.77 at $185.65, October live cattle are down $0.92 at $186.25 and December live cattle are down $0.97 at $187.80. So long as boxed beef prices continue to be well supported and the cash cattle market trades at least steady, there's little reason why the futures market should trade lower. It's obviously too early in the week for asking prices to be posted, but with feedlots able to keep the market steady again last week, it's likely feedlots will price their showlists higher this week. Last week the cash cattle market waited to trade until Friday and Southern live cattle traded for mostly $190 which is steady with the previous week's weighted average, and Northern dressed cattle traded for mostly $314, which is also steady with the previous week's weighted average. Boxed beef prices are higher: choice up $1.53 ($331.96) and select up $1.34 ($306.40) with a movement of 27 loads (13.76 loads of choice, 3.75 loads of select, zero loads of trim and 9.45 loads of ground beef). FEEDER CATTLE: One would think that with strong buyer interest early this week on both Superior Livestock Auction's and Western Video Market's online sales that feeder cattle prices would be higher; but traders seem hesitant to support the feeder cattle market as the live cattle complex trades lower. It wouldn't be surprising to see the feeder cattle market gain more support as the day moves onward and traders will likely note the added fundamental strength of the countryside's feeder cattle demand. August feeders are down $0.10 at $261.37, September feeders are steady at $262.22 and October feeders are up $0.10 at $262.37. LEAN HOGS: The lean hog complex is trading mixed into Monday's noon hour as the market looks for demand, but at this point it is again coming up short. August lean hogs are up $0.67 at $89.85, October lean hogs are down $0.02 at $73.45 and December lean hogs are down $0.62 at $66.65. Yes, midday pork cutout values are up $1.30, but with the belly posting a $6.70 gain itself, the carcass price is skewed by that advancement. Friday, the market will see the monthly WASDE report which could help traders and hog producers alike better understand the demand outlook for both domestic and international consumers. The projected CME Lean Hog Index for 7/5/2024 is down $0.44 at $88.76, and the actual index for 7/3/2024 is down $0.25 at $89.20. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.75 with a weighted average price of $86.73, ranging from $86.00 to $89.00 on 277 head and a five-day rolling average of $89.74. Pork cutouts total 151.75 loads with 132.63 loads of pork cuts and 19.12 loads of trim. Pork cutout values: up $1.30, $96.21. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.