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DTN Midday Livestock Comments 07/07 11:52
Livestock Contracts Start Week Off Strong
Livestock contracts are trading mostly higher into Monday's noon hour, as
traders are pleased to see better fundamental demand and strong trade in the
equity markets.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading mostly higher into Monday's noon hour as
better pork demand is helping spur on stronger trade in the hog complex, and
the cattle contracts are pleased to see the equity markets trading higher. July
corn is down 12 cents per bushel and July soybean meal is down $4.60. New
showlists appear to be mixed, higher in Nebraska/Colorado, but lower in Kansas
and Texas. The Dow Jones Industrial Average is down 472.55 points and the
NASDAQ is down 171.31 points.
LIVE CATTLE:
With the equity markets off to a strong start this week, the live cattle
complex is also pushing an impressive rally to start Monday's trade off strong.
August live cattle are up $1.25 at $215.32, October live cattle are up $1.30 at
$212.20 and December live cattle are up $1.20 at $212.50. This week it will be
interesting to note how fed cash cattle prices trend, as packers need to stay
engaged enough in the market to avoid becoming short bought for the weeks
ahead, but it's unlikely that the market will trade better than steady, as
packers do have some immediate supply around them. It will also be interesting
to note how boxed beef prices will trade as seasonally it's expected that
demand should soften. New showlists appear to be mixed, higher in
Nebraska/Colorado, but lower in Kansas and Texas.
Last week Northern dressed cattle traded at mostly $368 to $370, which is
steady to $2.00 lower than the previous week's weighted average, and Southern
live cattle traded at mostly $222 to $225, which is also steady to $2.00 lower
than the previous week's weighted average.
Boxed beef prices are higher: choice up $1.25 ($391.00) and select up $2.57
($381.01) with a movement of 42 loads (23.75 loads of choice, 6.91 loads of
select, 6.50 loads of trim and 4.99 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is aggressively trading higher into Monday's noon
hour as most of the contracts are trading anywhere from $2.00 to $3.00 higher.
From a cow-calf producer's standpoint, it's stress-relieving to see the market
trade higher, as again this week Superior Livestock Auction is going to be
hosting their Week in the Rockies Sale. It will again help set the tone for
what feeder cattle prices could be later this fall. August feeders are up $3.40
at $312.75, September feeders are up $3.25 at $312.62 and October feeders are
up $3.15 at $310.30.
LEAN HOGS:
The lean hog complex is trading mostly higher into Monday's noon hour as
traders are pleased to see the slight uptick in pork demand. Last week, demand
was sluggish, and it gravely affected the futures complex. July lean hogs are
down $0.55 at $107.42, August lean hogs are up $1.42 at $107.52 and October
lean hogs are up $0.87 at $92.97. Wild price swings are currently the theme of
this morning's cutout report as the belly is up $13.83, the picnic is up $7.15
and the rib is up $4.76.
The projected lean hog index for 7/3/2025 is down $1.18 at $108.33, and the
actual index for 7/2/2025 is down $0.71 at $109.51. Hog prices are unavailable
on the Daily Direct Morning Hog Report because of confidentiality. However, we
can see that only 775 head have traded this morning and that the market's
five-day rolling average now sits at $111.15. Pork cutouts totaled 141.48
loads, with 133.44 loads of pork cuts and 8.03 loads of trim. Pork cutout
values: up $4.89, $115.10.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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