GENERAL COMMENTS: Livestock futures fell early Thursday, but recovered late in the day as buyers moved back into the market. Concerns over higher production costs were replaced by hope that a deal between the U.S. and Mexico over immigration can be reached before tariffs go into effect. Cash cattle trade developed in the North with dressed deals of $183 to $186 per cwt. There may be some additional cleanup trade Friday, but at this point, it appears the tone of the market has been set with prices generally $2 to $3 per cwt lower than last week. The National Daily Direct afternoon hog report was $0.73 lower ($68-$77, weighted average $75.63) on 7,670 head sold. Corn futures posted firm gains in light trade with July up 5 cents per bushel. The Dow Jones Index is 54 points higher with the NASDAQ down 43 points.
LIVE CATTLE: Live cattle futures were under pressure early in the day, but saw limited gains at the close of trade Thursday. Futures closed mixed ($0.25 lower to $0.45 higher). Buyers returned to the market as increased cash movement developed and as traders focused on long-term demand for beef. Additional trade volume may be seen early Friday, but the market seems to have stabilized. Beef cut-outs: mixed, down $0.02 (select, $207.16) to up $0.14 (choice, $222.25) with moderate demand and offerings, 116 loads (78 loads of choice cuts, 24 loads of select cuts, 4 loads of trimmings, 9 loads of coarse grinds).
FRIDAY'S CASH CATTLE CALL: $2 lower than last week. Light-to-moderate trade developed in Kansas and Nebraska Thursday. With most business done for the week, cleanup activity is likely to be the extent of market movement for the week.
FEEDER CATTLE: Feeder cattle futures bounced back from sharp early losses to close mixed, $0.17 lower to $0.07 higher. Support in live cattle futures and limited late-day selling left prices in a very narrow range. Traders are looking for direction on Friday, but at this point, trade may be sluggish most of the session. Summer contracts held narrow losses as traders seemed to focus on the lack of buying activity late in the week. CME cash feeder index for 6/5 is $131.60, down $0.24.
LEAN HOGS: After sharp early losses, lean hog futures rebounded somewhat late Thursday, settling $0.47 lower to $0.55 higher. Late-day buying in deferred contracts helped stabilize the complex and led to light gains. Pork cutout values added $0.18 per cwt, moving to 83.25 per cwt on 297 loads. CME cash lean index for 6/4 is $80.67, down $0.23. DTN Projected lean index for 6/5 is $80.47, down $0.20.
FRIDAY'S CASH HOG CALL: Steady to $1 lower. Cash hog trade is expected to remain within the current market range Friday with most bids steady to weak. Some additional end-of-the-week buying is expected in order to secure deliveries for early next week. Friday's slaughter is expected at 464,000 head. Saturday runs are expected near 50,000 head.
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