DTN Midday Livestock Comments          05/07 11:34

   Lower Tones Sweep Across Livestock Complex 

   A handful of cattle have traded at $219 in Texas, but otherwise the cash 
cattle market has been quiet thus far Wednesday. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex has had a mundane day thus far as all three of the 
markets are trading lower and not much more has developed in the cash cattle 
market following Tuesday's action. More trade will need to develop ahead of the 
week's end but feedlot managers who have yet to sell seem comfortable waiting 
the week out to see what prices may surface later. May corn is down 3 1/4 cents 
per bushel and May soybean meal is up $3.00.

   The Dow Jones Industrial Average is up 281.65 points and NASDAQ is down 
58.84 points.

LIVE CATTLE:

   After reaching new contract highs yet again just Tuesday, and following the 
light business that took place in the South at $218 to $220 which is steady to 
$2.00 higher than last week's weighted average, traders have grown cold to the 
live cattle complex as all its contracts are trading lower into Wednesday's 
noon hour. June live cattle are down $1.65 at $211.95, August live cattle are 
down $1.77 at $207.60 and October live cattle are down $1.42 at 205.45. More 
than anything it seems as though traders are cautious about overly supporting 
the complex more than they already have; traders could also be waiting to see 
what happens in the North for fed cash cattle trade. At this point only a few 
more cattle have sold in Texas for $219 which is steady with Tuesday's 
business, but otherwise no more cattle have sold. Asking prices in the South 
are noted at $220-plus but are still not fully established in the North.

   Boxed beef prices are higher: choice up $1.43 ($346.10) and select up $0.94 
($333.91) with a movement of 67 loads (39.76 loads of choice, 6.68 loads of 
select, 8.82 loads of trim and 11.45 loads of ground beef).

FEEDER CATTLE:

   Following in the same direction as the live cattle contracts, the feeder 
cattle market is trending lower into Wednesday's noon hour. May feeders are 
down $2.32 at $293.37, August feeders are down $2.17 at $297.10 and September 
feeders are down $2.05 at $295.82. And just like the live cattle complex, this 
lower move doesn't seem to be because of any rationale other than because 
traders are worried the market is overbought.

LEAN HOGS:

   Without any rip-roaring, wild support stemming from the market's 
fundamentals, it's no surprise to see the lean hog complex trading lower again. 
June lean hogs are down $0.10 at $97.47, July lean hogs are down $0.22 at 
$99.17 and August lean hogs are down $0.40 at $97.72. And while pork cutout 
values may be up slightly, it currently isn't enough to help boost the morale 
of traders as their tone and sentiment is set on trading lower Wednesday.

   The projected CME Lean Hog Index for 5/6/2025 is up $0.03 at $90.16, and the 
actual index for 5/5/2025 is up $0.27 at $90.13. Hog prices on the Daily Direct 
Morning Hog Report average $92.41, ranging from $88.00 to $96.75 on 2,540 head 
and a five-day rolling average of $92.28. Pork cutouts total 213.31 loads with 
188.98 loads of pork cuts and 34.33 loads of trim. Pork cutout values: up 
$0.15, $95.85.

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




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