GENERAL COMMENTS:
As the day progressed, feeder cattle contracts weakened, as the fate of the live cattle market becomes an anxious worry for both contracts. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.17, with a weighted average of $28.53 on 7,104 head. July corn is up 3/4 cent per bushel and July soybean meal is up $1.00. The Dow Jones Industrial Average is down 39.51 points and NASDAQ is up 32.52 points.
LIVE CATTLE:
Live cattle contracts closed moderately lower and really felt the industry's pressure right from the day's get-go. As the market continues to trade in what seems like a sideways holding pattern, traders and cattlemen alike believe the market is going to turn lower before it turns higher. August live cattle closed $0.75 lower at $96.10, October live cattle closed $0.42 lower at $99.40 and December live cattle closed $0.60 lower at $103.27. Some more cash trade trickled in Thursday afternoon, mostly steady with the rest of the week. Thus far, Southern live cattle have sold for $98 to $102 and Northern cattle have sold for $157 to $167.
Thursday's slaughter is estimated at 120,000 head, 3,000 head more than a week ago and 1,000 head less than a year ago. Wednesday's single day movement of 200 loads was enough to grab attention, but Thursday's movement of 252 loads is phenomenal. Retailers want product -- they want it now and they have coolers to fill.
Boxed beef prices close lower: choice down $4.37 ($213.56) and select down $4.00 ($204.08) with a movement of 252 loads (145.55 loads of choice cuts, 37.09 loads of select, 11.77 loads of trim and 57.23 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. Seeing that the week has been slow, trade that develops on Friday will most likely be for the same prices.
FEEDER CATTLE:
Feeder cattle contracts tried to rally in the early part of the day but soon bowed lower to the growing pressure throughout the cattle contracts. Knowing that the live cattle market is trading on borrowed time, and that it's bound to fall lower nearly any day, feeder cattle contracts traded lower in caution. August feeders close $0.60 lower at $132.97, September feeders close $0.70 lower at $134.25 and October feeders closed $0.62 lower at $135.10. Thankfully, the support throughout the countryside has left the feeder cattle market alone and the market continues to push prices nearly each week. At Winter Livestock in Pratt, Kansas, compared to last week, feeder heifers from 750 to 900 pounds sold $3.00 to $6.00 higher. Feeder steers over 800 pounds sold $3.00 to $5.00 higher. Slaughter cow sold steady to 1$.00 lower and slaughter bulls sold steady to $2.00 higher. The CME feeder cattle contract for 6/17/2020: up $0.10, $128.51.
LEAN HOGS:
Cattle contracts may have closed lower, but the lean hog complex was able to (barely) pull off a higher close. July lean hogs closed $0.25 higher at $49.90, August lean hogs closed $0.30 higher at $53.47 and October lean hogs closed $0.05 lower at $51.17. Though the day closed somewhat stronger, the complex is far below the 40-day moving average ($57.02) and the 100-day moving average ($56.78). Pork cutouts total 487.48 loads with 454.34 loads of pork cuts and 33.15 loads of trim. Pork cutout values: down $0.46, $65.01. Friday's slaughter is estimated at 460,000 head, 10,000 head more than a week ago and 19,000 head less than a year ago. The lean hog index 6/16/2020: down $0.37, $48.10.
FRIDAY'S CASH HOG CALL: Slightly lower. A burdensome supply keeps weighing heavily on the cash hog market.
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