DTN Midday Livestock Comments          06/02 11:52

   Cattle Move Lower While Hogs Scale Higher 

   Heading into Tuesday's noon hour, the cattle contracts are continuing to 
drift lower while the hog complex has found modest support. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed into Tuesday's noon hour as the 
cattle futures remain on edge amid more news about New World screwworm. On the 
other hand, with midday pork cutout values higher the lean hog contracts are 
trading higher. July corn is down 1 3/4 cents per bushel and July soybean meal 
is down $0.20. The Dow Jones Industrial Average is up 94.12 points and NASDAQ 
is up 19.02 points.

LIVE CATTLE:

   Live cattle futures continue to trade lower as the complex longs for greater 
fundamental support. June live cattle are down $1.40 at $247.55, August live 
cattle are down $2.00 at $238.60 and October live cattle are down $2.20 at 
$230.12.  Unless the fed cash cattle market trades higher it is most likely 
this steady to somewhat lower sideways chop will continue to be the market's 
main theme this week. A few sales have been reported in Texas this morning at 
$255, but not enough cattle have traded to say any sort of a trend for the week 
has been established.

   There's been a lot of chatter surrounding New World screwworm this week. 
This morning news was circulating that a case of NWS had been detected just one 
mile from the U.S./Mexico border. But USDA posted on X that they have not 
confirmed a case that close and the rumor is misinformation. 

   Boxed beef prices are higher: choice up $0.98 ($393.81) and select up $0.73 
($383.82) with a movement of 76 loads (53.06 loads of choice, 12.27 loads of 
select, zero loads of trim and 11.01 loads of trim).

FEEDER CATTLE:

   With rumors circulating about New World screwworm and no one knowing what to 
believe or not to believe at this point, the feeder cattle complex has fallen 
sharply lower as traders don't want to be caught in a position of too much 
optimism. August feeder cattle are down $4.62 at $346.85, September feeders are 
down $4.70 at $343.97 and October feeders are down $4.72 at $340.57. Given the 
bearish sentiment that overcame the cattle complex today it's likely the market 
will keep with this lower trend through Tuesday's close.

LEAN HOGS:

   The lean hog complex, on the other hand, is trading higher into Tuesday's 
noon hour as traders are pleased to note the uptick in pork demand as the 
midday pork cutout values is more than $2.00 higher. June lean hogs are up 
$0.67 at $95.70, July lean hogs are up $1.62 at $101.47 and August lean hogs 
are up $0.92 at $98.52. The market will run into some resistance pressure 
around $102 in the spot July contract, but as of this point traders are 
continuing to push the contract higher.

   The projected CME Lean Hog Index is delayed from the source. Hog prices are 
higher on the Daily Direct Morning Hog Report, up $0.92 with a weighted average 
price of $94.75, ranging from $92.00 to $95.00 on 1,020 head and a five-day 
rolling average of $94.26. Pork cutouts total 173.25 loads with 151.47 loads of 
pork cuts and 21.79 loads of trim. Pork cutout values: up $2.53, $102.28.

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




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