DTN Midday Livestock Comments          06/11 11:42

   Light Load Count, Weaker Boxed Beef Prices Mark Friday Midday

   With only 33 loads of beef cuts at midday and a projected slaughter of 
117,000 head, all eyes will be on the afternoon beef reports as these volumes 
aren't beneficial to the marketplace. 

ShayLe Stewart
DTN Livestock Analyst

   GENERAL COMMENTS:

   Traders have grown fond of both the live cattle and feeder cattle contracts 
throughout Friday trade and the cattle complex is delighted to see support 
before the weekend. Meanwhile, the lean hog contracts are coasting lower, 
seeming to buy themselves time until next week provides direction. July corn is 
down 21 1/4 cents per bushel and July soybean meal is down $3.20. The Dow Jones 
Industrial Average is down 119.37 points and NASDAQ is down 1.78 points.

   LIVE CATTLE:

   Live cattle futures aren't rallying as aggressively as the feeder cattle 
contracts, but Friday's upward push of $1.00 to $2.00 higher is allowing the 
June live cattle contracts to challenge the 100-day moving average ($118.71). 
Traders may be looking to invest before the weekend and we know that the most 
reliable information comes from the afternoon reports. But seeing the thin load 
count on this morning's boxed beef report is bothersome. Not only are both 
choice and select cuts lower, but a volume of only 33 loads is pitiful. The 
day's slaughter is only projected to be around 117,000 which is inadequate to 
meet the market's high demand and to ensure sufficient throughput. The cash 
cattle market hasn't seen a bit of attention as the week's business is 
essentially done with. There may be some dismal clean-up trade develop here and 
there but it won't likely amount to much.

   Boxed beef prices are lower: choice down $0.48 ($337.77) and select down 
$4.89 ($305.51) with a movement of 33 loads (15.05 loads of choice, 11.61 loads 
of select, zero loads of trim and 6.54 loads of ground beef).

   FEEDER CATTLE:

   Corn futures are 14 to 20 cents lower in the nearby contracts and this has 
granted the feeder cattle market an opportunity to rally into the weekend. 
August feeders are up $2.97 at $151.37, September feeders are up $2.72 at 
$153.62 and October feeders are up $2.40 at $155.65. For the most part, this 
past week hasn't extended the feeder cattle complex any favors as the market 
had to juggle back-and-forth signals from the corn sector, topping boxed beef 
prices and stagnant cash cattle trade. But, then again, what's new?

   LEAN HOGS:

   Lean hog futures may be trading lower, but it's not because the market lacks 
demand or is flush on supplies. As traders look to the weekend and look at the 
hog rally since the first of the year, I think we all shake our heads in 
disbelief. The market is settling into the July lean hog contract as the June 
contract is set to expire Monday, June 14. With demand continuing to shine 
through the market even after the Memorial Day holiday, packers are scrounging 
the countryside for hogs and it's apparent in the market's cash spread of 
$25.55 that finding market-ready hogs in some regions is far harder than in 
others. Nevertheless, traders will most likely let the market float throughout 
the rest of Friday and will look to the beginning of next week to set the 
market's tone. July lean hogs are down $1.45 at $119.85, August lean hogs are 
down $1.92 at $116.77 and October lean hogs are down $1.17 at $96.72.

   The projected CME Lean Hog Index for 6/10/2021 is up $0.95 at $120.86 and 
the actual index for 6/9/2021 is up $1.20 at $119.91. Hog prices are lower on 
the National Direct Morning Hog Report, down $5.17 with a weighted average of 
$109.89, ranging from $104.45 to $130.00 on 1,580 head and a five-day rolling 
average of $109.75. Pork cutouts total 179.31 loads with 157.58 loads of pork 
cuts and 21.73 loads of trim. Pork cutout values: up $6.64, $140.69.

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




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