DTN Midday Livestock Comments          06/08 11:44

   Southern Feedlots Hold Out for More Money

   The livestock market is trying to patiently wait to see what happens in the 
South Thursday afternoon as feedlots are making packers pay up for cattle.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The cash cattle market continues to be where the cattle market's focus 
remains as Southern feedlots have yet to really let cattle trade. Trade could 
break loose later Thursday afternoon or it could just as easily be delayed 
until Friday. July corn is up 6 1/4 cents per bushel and July soybean meal is 
down $0.00. The Dow Jones Industrial Average is up 155.42 points.

LIVE CATTLE:

   The live cattle complex is trading mixed with some of the nearby contracts 
trying to trade higher while most of the deferred contracts continue to trade 
lower. June live cattle are up $0.72 at $179.72, August live cattle are up 
$0.05 at $173.22 and October live cattle are up $0.02 at $175.65. The cash 
cattle market continues to be a nail-biting marketplace as Southern feedlots 
are committed to getting substantially higher prices this week for their cattle 
and continue to refuse to sell them at what packers are currently offering. 
Thursday morning bids of $183 to $184 have been offered, but Southern feedlots 
are asking $186 to $190. Trade could break loose Thursday afternoon in the 
South, or it could just as easily be delayed until Friday.

   A light to moderate trade was reported in Nebraska and Iowa Wednesday with 
dressed deals marked at mostly $300, $10 higher than last week's weighted 
averages, there were even a few head that sold as high as $304. Live sales in 
that area had a range of $189 to $191, $3 to $5 higher than last week's 
weighted averages. Just a handful of business has been reported in the South 
this week with a range of $180 to $184, $3 to $7 higher than last week's 
weighted averages.

   Beef net sales of 12,800 mt for 2023 were down 29% from the previous week 
and 27% from the prior four-week average. The three largest buyers were Japan 
(3,900 mt), South Korea (3,900 mt) and Mexico (1,900 mt).

   Boxed beef prices are higher: choice up $2.55 ($327.74) and select up $2.15 
($303.71) with a movement of 63 loads (22.43 loads of choice, 17.82 loads of 
select, 3.90 loads of trim and 18.99 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is back to trading higher as the market notes the 
mostly lower trend in corn prices and loves the continued momentum in both the 
cash cattle and feeder cattle markets in the country. It doesn't matter if you 
spent your time tracking Superior's Corn Belt Classic sale or if you watched 
various sales throughout the country, feeder cattle prices continue to trek 
higher as buyers are worried about finding enough replacements to restock their 
empty pens later this year. August feeders are up $1.37 at $240.47, September 
feeders are up $0.92 at $243.20 and October feeders are up $0.62 at $245.17.

LEAN HOGS:

   The lean hog complex is again trading lower as traders remain cautious 
market participants even though the market's fundamentals are still rather 
supportive. July lean hogs are up $0.02 at $86.95, August lean hogs are down 
$1.02 at $82.05 and October lean hogs are down $1.12 at $74.62. Today's export 
report had little effect on the market as traders were happy to see China 
listed as one of the largest buyers, but unfortunately the report didn't help 
propel prices higher. With both cash prices and pork cutout values higher, one 
would think that traders would be willing to supportive the market, but outside 
pressures remain traders' biggest concern for the time being.

   Pork net sales of 25,500 mt for 2023 were up 13% from the previous week, but 
down 11% from the prior four-week average. The three largest buyers were Mexico 
(9,100 mt), China (8,100 mt) and Japan (3,200 mt).

   The projected lean hog index for July 7 is up $0.76 at $83.80, and the 
actual index for July 6 is up $1.18 at $83.04. Hog prices are higher on the 
Daily Direct Morning Hog Report, up $1.63 with a weighted average price of 
$94.07, ranging from $84.50 to $96.00 on 8,778 head and a five-day rolling 
average of $89.76. Pork cutouts total 175.33 loads with 163.05 loads of pork 
cuts and 12.28 loads of trim. Pork cutout values: up $2.32, $87.47.

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

   **

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