DTN Midday Livestock Comments 04/23 11:42
04/23/2024
DTN Midday Livestock Comments 04/23 11:42
Feeders Continue to Grind Higher
Even with the live cattle contracts trading slightly lower, the feeder
cattle complex continues to trade higher as its market is seeing ample
technical and fundamental support.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The live cattle complex isn't trading higher but that hasn't delayed any
progress in the feeder cattle market thus far. Meanwhile, the lean hog complex
is continuing to trade higher as well, as traders believe demand will keep the
market well supported. May corn is up 2 3/4 cents per bushel and July soybean
meal is up $0.30. The Dow Jones Industrial Average is up 247.72 points.
LIVE CATTLE:
The live cattle complex is trading mostly lower into Tuesday's noon hour as
the market seems to catch its breath after Monday's aggressive sprint. As of
this point, it is promising however to see that traders are respecting the
market's previous resistance threshold at $175.50 and keep the market above
that price point. If traders let the market close below that point, it will
signal some weakness. June live cattle are down $1.15 at $176.92, August live
cattle are down $0.82 at $175.52 and October live cattle are down $0.47 at
$179.45. No cash cattle trade has developed and it's not likely that the market
will see any trade unfold until Thursday or Friday. Bids and asking prices are
still elusive, but feedlots are expected to price cattle higher this week.
Boxed beef prices are higher: choice up $3.69 ($299.62) and select up $0.74
($292.61) with a movement of 71 loads (35.95 loads of choice, 12.58 loads of
select, 5.15 loads of trim and 17.78 loads of ground beef).
FEEDER CATTLE:
Even with the live cattle contracts trading slightly lower, the feeder
cattle complex has maintained its positive position and continues to trade
higher into Tuesday's noon hour. The momentum that stemmed from Friday's lower
placements was just the kick of encouragement that the market needed as it also
ignited higher feeder cattle sales in the countryside. At this point, it's
looking like the feeder cattle complex possesses enough support to potentially
round out the day higher even without the live cattle market's support. May
feeders are up $1.00 at $246.17, August feeders are up $0.90 at $259.40 and
September feeders are up $1.35 at $260.72.
LEAN HOGS:
Even with the midday pork cutout values being doing notably, the lean hog
complex is charging onward and hopes that the day's afternoon cutout price will
lend the market support. June lean hogs are up $2.12 at $107.62, July lean hogs
are up $1.77 at $109.45 and August lean hogs are up $1.97 at $106.92. The cash
cattle market still hasn't seen much packer interest develop, but with the
market's stronger tone and the continued aggressive pace in processing, packers
could get more aggressive later this afternoon or likely on Wednesday.
The projected lean hog index for April 22 is up $0.14 at $91.45 and the
actual index for April 19 is down $0.04 at $91.31. Hog prices on the Daily
Direct Morning Hog Report average $91.01, ranging from $90.00 to $92.00 on 995
head and a five-day rolling average of $89.60. Pork cutouts total 133.48 loads
with 122.71 loads of pork cuts and 10.77 loads of trim. Pork cutout values:
down $3.39, $98.31.
ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com
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