DTN Midday Livestock Comments 07/25 11:46

DTN Midday Livestock Comments 07/25 11:46 Cattle Contracts, Midday Boxed Beef Prices Are Higher No cash cattle trade has developed yet Thursday, but packer interest should improve throughout the afternoon. Todd Hultman DTN Lead Analyst GENERAL COMMENTS: With the cash cattle market holding out hopes for at least steady trade and with midday boxed beef prices higher -- both the live cattle and feeder cattle contracts have regained some excitement. Packer interest should improve throughout the day, but cash trade could be delayed until Friday. December corn is up 3 3/4 cents per bushel and December soybean meal is up $7.50. The Dow Jones Industrial Average is up 498.23 points. Thursday's export sales report shared that beef net sales of 13,400 metric tons (mt) for 2024 were down 13% from the previous week and 4% from the prior 4-week average. The three primary buyers were South Korea (4,400 mt), Japan (2,200 mt) and China (1,800 mt). Pork net sales of 30,200 mt for 2024 were up 28% from the previous week but down 19% from the prior 4-week average. The three primary buyers were Mexico (7,700 mt), South Korea (6,400 mt) and Japan (4,500 mt). LIVE CATTLE: The live cattle complex is rocking and rolling as the market nears Thursday's noon hour. With the contracts comfortably trading anywhere from $1.00 to $2.60 higher, feedlots are beginning to believe they could keep this week's market at least steady in the cash sector. Still no cash cattle trade has developed, but with board remaining supportive, feedlots aren't in any hurry to trade their pens as they know that waiting the week out will likely bode well for them. August live cattle up $1.97 at $188.87, October live cattle are up $2.55 at $188.82 and December live cattle are up $1.92 at $189.17. Asking prices are noted at $190-plus in the South but are still not established in the North. Packer interest could begin to develop later this afternoon, but trade could just as easily be delayed until Friday at this point. And don't glance over the fact that midday boxed beef prices are higher -- which is undoubtedly adding support to Thursday's market as well. Boxed beef prices closed higher: choice up $0.40 ($313.08) and select up $1.36 ($295.32) with a movement of 71 loads (39.02 loads of choice, 20.66 loads of select, 6.15 loads of trim and 5.57 loads of ground beef). FEEDER CATTLE: The feeder cattle complex is trading right in line with the strong nature of the live cattle market. With midday boxed beef prices higher, all the live cattle contracts higher and with buyer demand still incredibly strong in the countryside -- traders feel supported enough to now have advanced the spot August contract back above the market's 100- and 40-day moving average. August feeders are up $2.50 at $259.60, September feeders are up $1.90 at $258.60 and October feeders are up $1.45 at $257.87. LEAN HOGS: After trading higher for nearly the last 10 consecutive days in a row, the lean hog complex's rally has ceased for the time being as most of the contracts are trading slightly lower. August lean hogs are up $0.02 at $93.82, October lean hogs are down $0.52 at $77.50 and December lean hogs are down $0.57 at $69.62. The market seems to be technically exhausted more than anything, as traders are still being well supported given that midday pork cutout values are higher. It is likely the market will keep with this cautious tone through the day as traders reassess their immediate direction. The projected CME Lean Hog Index for 7/24/2024 is up $0.62 at $91.39, and the actual index for 7/23/2024 is up $0.69 at $90.77. Hog prices are unavailable on the Daily Direct Morning Hog Report. However, we can see that only 127 head have traded and the market's five-day rolling average now sits at $83.74. Pork cutouts total 154.68 loads with 140.87 loads of pork cuts and 13.82 loads of trim. Pork cutout values: up $2.33, $107.09. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.