DTN Midday Livestock Comments          05/13 11:39

   Feeder Cattle and Hogs Look to Recover Some of Thursday's Lost Position

   The feeder cattle and lean hog contracts are attempting to regain some of 
the market share that Thursday threw away, but the live cattle complex isn't as 
confident as its market has other hurdles to face.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   After Thursday's blood bath, the livestock contracts were sheepish in how 
they approached Friday's market, but upon thorough evaluation, traders have 
deemed it safe and are now letting the feeder cattle and lean hog contracts 
trade slightly higher, but the live cattle contracts aren't as confident. July 
corn is down 11 3/4 cents per bushel and July soybean meal is up $9.50. The Dow 
Jones Industrial Average is up 507.86 points.

LIVE CATTLE:

   Little interest in the cash cattle market, immense pressure throughout the 
futures market and a wavering consumer base (when historically prices would be 
rallying higher for grilling weather) all has the live cattle complex holding 
its breath. With its counterparts, the feeder cattle and lean hog contracts, 
are trading higher the live cattle market isn't as sure and continues to trade 
mostly lower. June live cattle are up $0.32 at $131.97, August live cattle are 
down $0.05 at $132.72 and October live cattle are down $0.37 at $139.47. The 
cash cattle market hasn't seen any renewed interest and it's looking like the 
bulk of this week's trade is done with. This week's movement hasn't amounted to 
much compared to the last three weeks' worth of trade, and all eyes will be 
looking for Monday's report to see exactly how many cattle traded. Throughout 
the week, Southern live cattle have traded for $140 and Northern dressed cattle 
for $230.

   Boxed beef prices are mixed: choice up $1.23 ($258.43) and select down $0.52 
($243.84) with a movement of 59 loads (31.52 loads of choice

FEEDER CATTLE:

   The feeder cattle contracts are feeling confident in their upward move as 
the corn market is chopping sideways with a $0.05 to $0.08 regression in its 
nearby contracts. Sales throughout the countryside have been thin as it's too 
soon for new-crop calves to be working their way into the market, and largely 
most of last year's calves have already traded. Come the first part of June, 
the market will see some of the industry's biggest auction houses hosting their 
early summertime sales and we'll begin to get a better understanding of what 
feeder cattle prices are going to bring this fall. May feeders are up $0.90 at 
$157.77, August feeders are up $1.35 at $167.87 and September feeders are up 
$0.87 at $170.55.

LEAN HOGS:

   After a less than desirable week, the lean hog complex is seeing support 
work its way into its nearby contracts, but the deferred contracts are still 
traipsing lower after noting the expectation of larger supplies come 2023. June 
lean hogs are up $2.45 at $99.92, July lean hogs are up $2.75 at $100.62 and 
August lean hogs are up $2.07 at $101.05. As the market continues to yearn for 
a clearer understanding of what the near-term market is supposed to be, it's 
likely that Friday's trade keeps a higher tone through the day's end but then 
will search for reassurance again next week.

   The projected lean hog index for May 12 is up $0.55 at $100.49, and the 
actual index for May 11 is down $0.22 at $101.04. Hog prices are lower on the 
Daily Direct Morning Hog Report, down $3.68 with a weighted average $101.27, 
ranging from $98.00 to $107.75 on 2,758 head and a five-day rolling average of 
$104.93. Pork cutouts total 175.87 loads with 163.74 loads of pork cuts and 
12.13 loads of trim. Pork cutout values: down $0.39, $98.21.

   ShayLe Stewart can be reached shayle.stewart@dtn.com




(c) Copyright 2022 DTN, LLC. All rights reserved.