GENERAL COMMENTS:
Monday was better than initially assumed as all three livestock futures markets were able to close the day stronger. Holiday weeks are typically problematic as trade is off-balanced and traders are usually checked out for a long weekend with little interest in really moving the market. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.18 with a weighted average of $28.48 on 6,201 head. July corn is up 9 1/4 cents per bushel and July soybean meal is down $1.60. The Dow Jones Industrial Average is up 580.25 points and NASDAQ is up 116.93 points.
LIVE CATTLE:
Live cattle contracts came out of the gate strong Monday and showed significant interest in trading higher, although they fought some resistance throughout the morning. The entire complex closed higher, ranging from $0.30 to $0.85 higher. August live cattle closed $0.45 higher at $96.47, October live cattle closed $0.57 higher at $100.05 and December live cattle closed $0.70 higher at $103.77. Some light cash trade developed in Iowa at $153 and some cattle also sold in Texas at $91 to $92. There wasn't enough trade to develop trends for the week and cash cattle interest will most likely pick up more come Tuesday. Monday's slaughter is estimated at 121,000 head -- 2,000 head more than last week and 2,000 head more than a year ago.
Boxed beef prices closed higher: choice up $1.19 ($208.36) and select up $1.86 ($200.71) with a movement of 150 loads (65.67 loads of choice, 24.77 loads of select, 24.45 loads of trim and 35.18 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Lower. Holiday weeks always throw a kink into the cash cattle market because packers either have to run and jump to get cattle bought or they sit back idly and let the week pass. Knowing there are ample amounts of cattle around, packers will probably pick up some cattle here and there with the most obvious trend for the week continued pressure on the cash cattle market.
FEEDER CATTLE:
Feeder cattle contracts turned around after the noon hour and closed $0.20 to $0.90 stronger. August feeders closed $0.90 higher at $133.50, September feeders closed $0.50 higher at $134.27 and October feeders closed $0.40 higher at $135.12. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, feeder steers sold steady to $4.00 higher compared to last week, and feeder heifers sold $2.00 to $6.00 higher. Demand for feeder cattle was notably strong and steer and heifer calves were called steady to $3.00 higher. There is concern about drought in that that area as strong winds and hot temperatures continue. The CME Feeder Cattle Index 6/26/2020: up $0.22, $130.04.
LEAN HOGS:
Even with last week's bearish USDA Hogs and Pigs report, the market closed fully higher Monday afternoon. July lean hogs closed $0.10 higher at $45.37, August lean hogs closed $0.32 higher at $48.45 and October lean hogs closed $0.42 higher at $47.42. Even with a slightly weaker cash hog trade, it's positive to see hog weights decreasing in efforts to help additional pressure from building. For the week ended June 13, hog live weights were down three pounds at 289 pounds and dressed weights were down two pounds at 216 pounds. Monday's slaughter is estimated at 468,000 head -- 18,000 head more than a week ago and 12,000 head more than a year ago. Pork cutouts totaled 431.68 loads with 389.81 loads of pork cuts and 41.87 loads of trim. Pork cutout values: down $0.74, $65.21. The CME lean hog index 6/25/2020: up $0.36, $45.23.
TUESDAY'S CASH HOG CALL: Steady to slightly lower. A modest regression is expected to continue as the sheer number of hogs available is plentiful.
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