Cattle and Hog Markets Show Indecision Amid Consolidation in 2024

Cattle and hog markets exhibit indecision and consolidation, with June Lean Hogs contract settling at 98.375 and August Feeder Cattle contract forming a spinning top candlestick. Estimated hog slaughter totals 2,390,000 head, while cattle slaughter reaches 622,000 head, both below last year's levels.

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Aqsa Younas Rana
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Cattle and Hog Markets Show Indecision Amid Consolidation in 2024

Cattle and Hog Markets Show Indecision Amid Consolidation in 2024

The cattle and hog markets are exhibiting signs of indecision and consolidation in 2024, according to the latest market analysis from The Hightower Report. As of May 11, 2024, the June Lean Hogs contract opened unchanged and traded between 97.60 and 99.80, settling at 98.375, below the key level of 98.475. The contract continues to consolidate in the lower end of its recent trading range between 97.225 and 100.55.

Why this matters: The direction of cattle and hog prices can have significant implications for the agricultural industry, influencing the livelihoods of farmers and ranchers. Moreover, changes in meat prices can also affect consumer behavior and the broader economy, making this market trend worth monitoring.

The pork cutout index ticked higher to 98.48 as of May 9, 2024, while the lean hog index remained unchanged at 91.28 as of May 8, 2024. Estimated hog slaughter for the week ending May 11, 2024, totaled 2,390,000 head, below last week but above last year's levels.

In the cattle markets, the August Feeder Cattle contract opened higher and traded between 249.05 and 252.35, settling at 250.90, above its 50-day moving average of 250.55. The contract formed a spinning top candlestick, indicating indecision among market participants. The feeder cattle index increased to 240.61 as of May 9, 2024.

Similarly, the June Live Cattle contract opened higher and traded between 175.175 and 177.275, settling at 176.15, above support at 175.95. The contract also formed a spinning top candlestick, reflecting the market's indecisiveness. Boxed beef cutouts were lower, with choice cutouts decreasing 0.82 to 294.57 and select decreasing 1.59 to 284.17. The choice-select spread widened to 10.40, with a load count of 155.

Estimated cattle slaughter for the week ending May 11, 2024, totaled 622,000 head, even with last week but below last year's levels. The market's indecision and consolidation patterns suggest that participants are closely monitoring supply and demand factors, as well as broadereconomic indicators, to gauge the direction of cattle and hog prices in the coming weeks and months.