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DTN Midday Livestock Comments 04/17 11:36


DTN Midday Livestock Comments 04/17 11:36

Traders Pull Back the Reins on the Livestock Complex

With the entire livestock trading lower, it's unlikely that feedlots will be
anxious to trade cattle today if any bids develop as they'll want to wait and
see if Thursday's market lends more technical support.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

The livestock complex is dismally trading through Wednesday's market as not
much has developed in support of the marketplace. Still no cash cattle trade
has developed and at this point, it's looking like trade will be delayed until
sometime Thursday or Friday. May corn is down 1/2 cent per bushel and May
soybean meal is up $3.30. The Dow Jones Industrial Average is down 110.74
points.

LIVE CATTLE:

The live cattle complex is trading lower as traders are looking for
continued support to justify advancing the contracts any higher. But with no
cash cattle trade having developed, and boxed beef prices still trading
sluggishly, the market is stalled out for the time being. Not to mention,
traders could be feeling some pressure from the 100-day moving average which is
sitting just above where the market is currently trading ($177.67). June live
cattle are down $0.92 at $174.80, August live cattle are down $0.40 at $172.52
and October live cattle are down $0.35 at $175.45. No cash cattle trade has
developed at this point, and it's looking like the week's trade will be delayed
until Thursday or Friday. Asking prices are noted in the South at $184 to $185
but have not yet been established in the North.

Boxed beef prices are lower: choice down $0.23 ($297.79) and select down
$0.74 ($291.90) with a movement of 73 loads (38.04 loads of choice, 17.21 loads
of select, zero loads of trim and 18.14 loads of ground beef).

FEEDER CATTLE:

With the live cattle complex trading lower, it comes as no surprise that the
feeder cattle contracts are trading lower too. May feeders are down $1.07 at
$239.90, August feeders are down $0.75 at $251.60 and September feeders are
down $0.85 at $252.77. With parts of the west getting a spring storm, cow-calf
producers are encouraged to see the shot of moisture hitting their pastures
ahead of their prime grass-growing season.

LEAN HOGS:

The lean hog complex is trading mixed with most of the market's nearby
contracts trading lower while some of the deferred months are trading mildly
higher. At this point, traders need to see followed-through consumer interest
to again give the futures board a boost of encouragement and reason why prices
should continue with their upward trend. June lean hogs are down $0.22 at
$102.60, July lean hogs are up $0.02 at $104.05 and August lean hogs are up
$0.30 at $101.90. The market's support may not come until Thursday in the form
of export sales.

The projected lean hog index for 4/16/2024 is up $0.38 at $91.36, and the
actual index for 4/15/2024 is up $0.25 at $90.98. Hog prices are higher on the
Daily Direct Morning Hog Report, up $2.31 with a weighted average price of
$88.45, ranging from $84.00 to $92.00 on 2,394 head and a five-day rolling
average of $87.48. Pork cutouts totaled 135.41 loads with 123.05 loads of pork
cuts and 12.35 loads of trim. Pork cutout values: up $0.16, $99.71.

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








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