DTN Midday Livestock Comments          05/15 11:42

   Cattle Continue to Trade Higher on Strong Demand 

   No cash cattle trade has developed by midday Wednesday and trade is likely 
delayed until Thursday at this point. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed into Wednesday's noon hour as the 
cattle sector thrives on stronger boxed beef prices, but the lean hog market 
isn't seeing much consistent pork demand which is why its market is mixed. 
Still, no cash cattle trade has developed and it looks like trade will be 
delayed until Thursday or potentially Friday. July corn is down 4 3/4 cents per 
bushel and July soybean meal is up $1.70. The Dow Jones Industrial Average is 
up 228.06 points.

LIVE CATTLE:

   Continuing to rally on the strong fundamental support of boxed beef prices, 
the live cattle complex is entering Wednesday's noon hour higher. June live 
cattle are up $0.07 at $178.25, August live cattle are up $0.32 at $176.47 and 
October live cattle are up $0.15 at $179.50. The market is currently trading at 
the upper echelon of its current sideways trading range which could inflict 
some technical pressure as traders are forced to either break above that 
threshold or remain in the current trading range. No cash cattle trade has 
developed yet, and no asking prices have been noted. It's assumed that asking 
prices will be higher as feedlots have taken note of the strong interest in 
boxed beef, but time will tell.

   Boxed beef prices are higher: choice up $2.98 ($307.37) and select up $0.85 
($294.67) with a movement of 60 loads (41.98 loads of choice, 7.97 loads of 
select, zero loads of trim and 10.26 loads of ground beef).

FEEDER CATTLE:

   Like the live cattle complex, the feeder cattle market is trading higher 
into Wednesday's noon hour as traders continue to find support and reassurance 
in the market's higher boxed beef prices. May feeders are up $0.07 at $243.20, 
August feeders are up $0.15 at $255.82 and September feeders are up $0.17 at 
$256.80.

   Following Tuesday's aggressive launch, traders are only mildly pushing the 
contracts higher as they wait to see what the cash complex achieves this week. 
Thankfully, timely moisture is helping improve pasture conditions which bode 
well for cow-calf producers.

LEAN HOGS:

   The lean hog complex is trading mixed into Wednesday's noon hour as traders 
are braced for whatever may come of this afternoon's pork cutout close and 
expect lackluster export sales Thursday morning. June lean hogs are down $0.85 
at $97.47, July lean hogs are down $0.05 at $100.87 and August lean hogs are up 
$0.02 at $99.92. Midday pork cutout values are slightly higher, but traders 
know it's the afternoon's carcass price that matters. Given that cash hog sales 
have been light this week, more sales are expected to develop later this 
afternoon and potentially even some more on Thursday depending on how 
aggressive packers are today.

   The projected lean hog index for May 14 is up $0.47 at $91.76 and the actual 
index for May 13 is up $0.07 at $91.29. Hog prices on the Daily Direct Morning 
Hog Report average $88.96, ranging from $85.50 to $92 on 2,670 head and a 
five-day rolling average of $88.57. Pork cutouts total 166.80 loads with 140.21 
loads of pork cuts and 26.59 loads of trim. Pork cutout values: up $0.81, 
$102.32.

   ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

    

    




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