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DTN Midday Livestock Comments          06/07 11:50

   Outside Pressure Drives Livestock Futures Lower 

   The livestock futures are trading lower as outside pressures concern 

ShayLe Stewart
DTN Livestock Analyst


   It's been a peculiar day for the livestock futures as the livestock market 
itself hasn't changed, but the external pressure that's looming has changed the 
tone for livestock enthusiasts. Cash cattle bids are currently on the table, 
but feedlots seem to want to wait the week out for potentially even better 
prices! Stay tuned because the cash cattle market is fixing to be wild again 
this week. July corn is down 1 1/2 cents per bushel and July soybean meal is up 
$5.90. The Dow Jones Industrial Average is up 69.83 points.


   Even though the cash cattle market has laid the groundwork for a higher 
market again this week, traders are anxious as they yield to external pressures 
and patiently wait for more cattle to trade. There's been another light round 
of cattle traded in Nebraska at $190, which is $4.00 higher than last week's 
weighted average; dressed deals have been marked $300, which is $10.00 higher 
than last week's weighted average, but that was only on a thin sampling. Bids 
are being offered up throughout the countryside, but largely feedlots seem to 
want to wait the week out to see just how badly packers need/want their cattle. 
Asking prices are around $183-plus in the South and $300-plus in the North. 
June live cattle are up $0.60 at $180.42, August live cattle are down $0.25 at 
$175.22 and October live cattle are down $0.87 at $177.40.

   Boxed beef prices are higher: choice up $2.37 ($323.77) and select up $1.29 
($300.73) with a movement of 76 loads (43.33 loads of choice, 13.50 loads of 
select, 6.52 loads of trim and 12.15 loads of ground beef).


   Even though the nearby corn contracts are trading $0.02 to $0.09 lower and 
the cash cattle market is barking at new all-time high prices -- the feeder 
cattle market is also trading lower as outside pressure keeps traders cautious. 
August feeders are down $1.00 at $242.25, September feeders are down $0.72 at 
$245.80 and October feeders are down $0.65 at $248.17. The cash cattle market 
has seen a light sampling of cattle traded, and it's looking like prices are 
going to be significantly higher again this week. But when trade finally breaks 
loose, and a large volume of cattle is traded, the feeder cattle market could 
see some spillover support.


   Even though market fundamentals remain strong, lean hog futures are seeing 
the same sheepish attitude from traders as the rest of the livestock contracts. 
June lean hogs are down $0.70 at $87.60, July lean hogs are down $0.97 at 
$87.35 and August lean hogs are down $0.85 at $83.70. Wednesday's midday 
softness isn't because of anything that's developed in the hog complex, but 
instead because of outside pressures that are creating some market distress. So 
long as cash interest remains strong and pork cutout values can continue to 
show support, prices may be able to trade higher later Wednesday afternoon or 
come Thursday -- especially if the market sees an encouraging export sales 

   The projected CME Lean Hog Index for 6/6/2023 is up $1.18 at $83.04, and the 
actual index for 6/5/2023 is up $0.65 at $81.86. Hog prices are higher on the 
Daily Direct Morning Hog Report, up $1.83 with a weighted average price of 
$92.44, ranging from $80.00 to $96.00 on 5,608 head with a five-day rolling 
average of $87.29. Pork cutouts total 174.64 loads with 153.27 loads of pork 
cuts and 21.37 loads of trim. Pork cutout values: up $0.21, $85.19.

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


   Join us Friday at 11 a.m. CDT for coverage of the June WASDE report. At 
12:30 p.m., DTN Lead Analyst Todd Hultman will review details of the report in 
his monthly webinar. You can sign up for that webinar here: 

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