GENERAL COMMENTS:
Thursday was a positive day for the board as all three markets closed higher, but the two cash markets teetered lower. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.82 with a weighted average of $32.97 on 6,617 head sold. July corn is up 5 cents per bushel and July soybean meal is up $3.50. The Dow Jones Industrial Average is up 11.93 points and NASDAQ is down 67.10 points.
LIVE CATTLE:
Live cattle contracts closed higher throughout the complex but deferred contracts closed substantially higher than nearby. June live cattle closed $0.27 higher at $95.72, August live cattle closed $0.57 higher at $97.92 and October live cattle closed $0.90 higher at $100.87. Adversely, the cash cattle market had another round of light trade Thursday afternoon for lower money than earlier in the week. Full trade ranges thus far have been from $105 to $118 live in the South and dressed cattle in the North have traded for $170 to $187. Thursday's slaughter is estimated at 117,000 head, 7,000 head more than a week ago and 5,000 head less than a year ago.
Every Thursday USDA shares the Actual Slaughter Under Federal Inspection (SJ_LS711), which shares actual slaughter data from two weeks ago. The latest report released Thursday afternoon shared data for the week ending May 23. That week slaughter totaled 571,506 head; up 10% from the previous week. The actual live cattle weight averaged 1,370 pounds and dressed steer weights averaged 894 pounds, down 7 pounds from the week before.
Boxed beef prices closed lower: choice down $23.64 ($272.26) and select down $16.37 ($260.41) with a movement of 166 loads (110.72 loads of choice, 26.22 loads of select, 13.19 loads of trim and 16.24 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. Friday will most likely be a day of clean trade at the lower end of the trading range.
FEEDER CATTLE:
Feeder cattle contracts closed Thursday afternoon with a modest rally in nearby contracts and with gains over $1.00 in deferred contracts. August feeders closed $0.50 higher at $134.72, September feeders closed $0.72 higher at $136.50 and October feeders closed $0.70 higher at $137.27. Thankfully the board closed higher, which gives salebarns the green light to keep calves and feeders steady to higher like they have been through the last couple of weeks. At OKC West Livestock Auction in El Reno, Oklahoma, compared to a week ago, feeder steers traded $2.00 to $3.00 higher. Feeder heifers sold steady and demand throughout the whole sale was good. Steer and heifer calves were too lightly tested to develop accurate trends, but lower undertones were noted. The CME feeder cattle index 6/3/2020: steady, $128.65.
LEAN HOGS:
Lean hog contracts were able to rally like the rest of the livestock contracts and close Thursday almost fully higher. The spot June contract fought resistance and closed slightly lower, but the rest of the complex closed $0.10 to $1.57 higher. June lean hogs closed $0.22 lower at $48.42, July lean hogs closed $0.10 higher at $53.57 and August lean hogs closed $0.87 higher at $55.77. Pork cutouts total 481.44 loads with 451.34 loads of pork cuts and 30.11 loads of trim. Pork cutout values: down $0.16, $74.85. Thursday's slaughter is estimated at 437,000 head, 15,000 head more than a week ago and 33,000 head less than a year ago. The CME lean hog index 6/2/2020: down $2.17, $57.06.
Thursday's USDA Actual Slaughter Under Federal Inspection shared that for the week ending May 23 hog slaughter totaled 2,173,162 head, up 1.85% from the previous week. The actual live hog weight averaged 293 pounds, and barrows and gilts averaged 216 pounds, down 1 pound from the previous week.
FRIDAY'S CASH HOG CALL: Lower. Seeing that there's an abundance of hogs available takes the competition out of the market for packers, which drives prices higher
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