DTN Midday Livestock Comments          05/08 11:46

   Traders Want to See Better Consumer Support 

   With boxed beef prices trading lower at noon Wednesday, the cattle complex 
is longing for support.  

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   It's a doggish Wednesday for the livestock complex as all three markets are 
trading lower and boxed beef prices are lower. Traders desperately want to see 
continued consumer support in both beef and pork demand before they support the 
contracts anymore. July corn is down 7 1/2 cents per bushel and July soybean 
meal is down $3.40. The Dow Jones Industrial Average is up 82.74 points.

LIVE CATTLE:

   Traders are letting the live cattle complex drift lower as the market 
desperately needs a shot of support. With boxed beef prices trading slightly 
lower, traders and cattle enthusiasts alike want to see better consumer support 
as that will likely encourage traders to support the contracts and help bolster 
the cash cattle market as well.

   June live cattle are down $1.02 at $176.60, August live cattle are down 
$1.30 at $174.22 and October live cattle are down $1.45 at $177.47. No trade 
has developed in the cash cattle market and at this point it's looking like 
trade will be delayed until Thursday. Asking prices in the South are noted at 
$186 to $187 but haven't been established yet in the North.

   Boxed beef prices are lower: choice down $1.79 ($296.70) and select down 
$3.46 ($288.88) with a movement of 98 loads (61.39 loads of choice, 17.09 loads 
of select, 8.40 loads of ground beef and 11.39 loads of trim).

FEEDER CATTLE:

   The feeder cattle complex is back in retreat mode as the market noted 
Tuesday's mixed cutout close and today's weak midday prices. It's also worth 
mentioning as it's likely having a psychological effect on the market that 
Cargill has announced the sale of its Fresno, California, beef plant to a local 
processor (Central Valley Meat) which doesn't bode well for the industry as 
fewer buyers hinder price discovery. May feeders are down $2.50 at $239.65, 
August feeders are down $2.47 at $251.95 and September feeders are down $2.52 
at $252.92.

LEAN HOGS:

   The lean hog complex isn't seeing the same support that Tuesday's market did 
as the contracts are trading lower as they weren't thrilled with Tuesday 
afternoon's lower pork cutout close. Yes, midday pork cutout values are higher 
today, but it's the afternoon carcass price that really matters. If Thursday's 
export sales report is fruitful, that may also encourage higher trade. But for 
now, the market seems set in a lower trend for the day.

   June lean hogs are down $0.65 at $97.67, July lean hogs are down $1.02 at 
$101.47 and August lean hogs are down $1 at $100.80. The projected lean hog 
index for May 7 is up $0.25 at $91.28 and the actual index for May 3 is up 
$0.24 at $91.03. Hog prices are lower on the Daily Direct Morning Hog Report, 
down $1.60 with a weighted average price of $92.58, ranging from $88.50 to $95 
on 3,512 head and a five-day rolling average of $92.27. Pork cutouts total 
134.79 loads with 114.05 loads of pork cuts and 20.75 loads of trim. Pork 
cutout values: up $2.70, $99.79.

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

    

    




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