DTN Midday Livestock Comments          06/14 11:41

   Boxed Beef Prices Scaling Lower 

   Feeder cattle futures are off to a good start with the corn market enduring 
a steep regression through Monday's trade. 

ShayLe Stewart
DTN Livestock Analyst

   GENERAL COMMENTS:

   The corn market's lower regression has granted the cattle contracts an 
opportunity to rally into the new week and they aren't looking back. The lean 
hog market isn't as charged to burst into Monday's trade, but if the market can 
prove that demand is still ample then there could be higher to steady prices 
obtained later in the week. July corn is down 22 1/4 cents per bushel and July 
soybean meal is down $8.50. The Dow Jones Industrial Average is down 228.68 
points and NASDAQ is up 53.97 points.

   LIVE CATTLE:

   Thanks to the support roaring in the feeder cattle market, the live cattle 
contracts are rallying in its shadow. June live cattle are up $0.45 at $119.15, 
August live cattle are up $0.97 at $120.97 and October live cattle are up $0.85 
at $126.62. Cattle enthusiasts have a lot to manage again this week with boxed 
beef prices now veering lower and plenty of questions circulating about what 
the cash cattle market's fate will be. New showlists appear to be mixed, higher 
in Nebraska/Colorado, but lower in Texas and Kansas.

   Last week's negotiated cash cattle trade totaled 98,467 head. Of that 67% 
(66,451 head) were bought with delivery for the next two upcoming weeks while 
the remaining 33% (32,016 head) were bought for the following 15- to 30-day 
delivery.

   Boxed beef prices are lower: choice down $1.53 ($336.03) and select down 
$0.54 ($304.67) with a movement of 39 loads (21.37 loads of choice, 4.85 loads 
of select, 7.04 loads of trim and 5.63 loads of ground beef).

   FEEDER CATTLE:

   The corn market's plunge is a fine sight for the feeder cattle contracts. 
With less pressure from corn, the feeder cattle contracts have been rallying 
all throughout Monday's trade with advancements well above $2.00 in most of the 
contracts. Cow-calf producers look at the market's strength and hope it lasts 
throughout the week and has a positive effect on Superior's Corn Belt Classic 
Sale this week in Sioux City, Nebraska. The sale expects right around 51,000 
head and cattlemen from all across the country will be watching its lots trade 
as they hope to better understand what could lie ahead for the feeder cattle 
market. August feeders are up $2.50 at $153.67, September feeders are up $2.47 
at $156.00 and October feeders are up $2.50 at $157.97.

   LEAN HOGS:

   The hog market hasn't been flattered by a landslide of trader interest or 
support, but we knew it may take the market some time before it was able to 
interest traders again this week. July lean hogs are down $1.90 at $118.07, 
August lean hogs are down $1.95 at $115.00 and October lean hogs are down $1.02 
at $95.57. The cash hog market was highly sought-after last week as 
market-ready supplies of hogs are thin, and even through Monday morning's 
report packers were back buying in the market. Monday's slaughter is estimated 
to be around 482,000 head which would be a sizeable kill for the market. In the 
days ahead it will continue to be important to monitor both slaughter speeds 
and cutout values.

   The projected CME Lean Hog Index for 6/11/2021 is up $1.05 at $121.91 and 
the actual index for 6/10/2021 is up $0.95 at $120.86. Hog prices are higher on 
the National Direct Morning Hog Report, up $0.80 with a weighted average of 
$110.69, ranging from $130.00 to $107.77 on 4,016 head and a five-day rolling 
average of $110.86. Pork cutouts total 155.19 loads with 139.98 loads of pork 
cuts and 15.21 loads of trim. Pork cutout values: down $2.56, $129.98.

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




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