GENERAL COMMENTS: Despite early weakness, hog futures bounced back to make strong gains at closing bell. Hog prices continue to wander within a moderate-to-wide trading range on limited new information. Cattle futures posted moderate-to-strong losses following liquidation in feeder cattle due to sharp corn market gains. Cash cattle activity remained sluggish with a few cattle selling in Texas at $112 Thursday afternoon. This is $1 per cwt lower than last week. Bids in other areas have been generally limited, but are expected to become much more active Friday. Asking prices are at $115 and higher live and $185 to $188 per cwt dressed. The National Daily Direct afternoon hog report is $0.32 lower ($67-$78.25 per cwt, weighted average $75.75) on 9,017 head sold. Corn futures firmed in active trade Thursday with July up 12 cents per bushel. Dow Jones Index is 101 points higher with Nasdaq up 44 points.
LIVE CATTLE: Moderate weakness developed in live cattle following sharp losses in feeder cattle. Futures settled $0.22 to $1.10 lower. Live cattle futures bounced higher and lower throughout Thursday session, but triple-digit losses in feeder cattle and a 12-cent rally in corn futures was too much for buyers to handle. Light-to-moderate weakness developed across nearby trade, while more aggressive pressure developed in deferred contracts. The weakness in the complex continues to cause concern prices may test May lows, which is leading to additional liquidation. At this point, though, it appears current market ranges may hold without any major additional shifts seen over the next couple of weeks. Beef cut-outs: lower, down $2.02 (select, $204.71) to down $0.05 (choice, $222.10) with good demand and light offerings, 147 loads (63 loads of choice cuts, 37 loads of select cuts, 6 loads of trimmings, 41 loads of coarse grinds).
FRIDAY'S CASH CATTLE CALL: Mixed. Trade still needs to be done Friday following very limited sales over the last couple of days. Bids are expected to become active early, but trade may be pushed off until late Friday in many areas.
FEEDER CATTLE: Feeder cattle futures plunged, closing $1.30 to $2.07 lower, following strong gains in grain futures. Triple-digit losses held through most of the session with traders looking for direction following the recent market rally in corn. Even though prices quickly backed away from session lows, most contracts fell $1.50 to $2 per cwt lower, leading to increased volatility through the entire complex. CME cash feeder index for 6/12 is $133.36, up $0.07.
LEAN HOGS: Lean hog futures closed mixed, $1.00 lower to $1.30 higher. After initial losses Thursday morning, futures found renewed buyer support midmorning as traders became more focused on potential demand through the end of the year, while noncommercial support redeveloped in deferred contracts. October through July 2020 contracts posted strong gains of 80 cents to $1.30 per cwt, as traders quickly tried to correct recent market pressure. Nearby July traded lower at the end of the session as active market-positioning developed across the complex. Additional market swings could be seen Friday. Pork prices firmed following a strong rally in rib cuts. Pork cutout value was up $0.50 per cwt, moving to $83.01 per cwt on 292 loads. CME cash lean index for 6/11 is $79.54, down $0.12. DTN Projected lean index for 6/12 is $79.57, up $0.03.
FRIDAY'S CASH HOG CALL: Steady to $1 lower. Active procurement is expected through the end of the week, allowing for most bids to remain steady Friday morning. However, a few packers continue to point to potentially lower prices. Friday slaughter is expected at 464,000 head, with runs Saturday near 68,000 head.
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