GENERAL COMMENTS:
Juggling the pieces of this week's markets isn't going to be for the lackadaisical. Cattle contracts are rolling higher while the cash market bleeds lower, and the lean hog complex closed substantially lower. The one positive thing throughout both markets is that protein products are moving, and consumers are going to be able to afford the meat offered at stores this summer. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.72, with a weighted average of $29.06 on 8,378 head. July corn is down 1/4 cent per bushel, and July soybean meal is down $0.50. The Dow Jones Industrial Average was up 526.82 points, and NASDAQ was up 169.85 points.
LIVE CATTLE:
Live cattle contracts rallied support from the day's get-go and also rallied feeder cattle along the way. August live cattle closed $0.77 higher at $96.77, October live cattle closed $1.10 higher at $99.75 and December live cattle closed $1.00 higher at $103.87. Tuesday's trade leaves prices in the middle of the 100-day moving average ($102.01) and the 40-day moving average ($93.92). Like the lean hog complex, it was encouraging to see boxed beef amount to 187 loads so that consumers can plan for the rest of the grilling season, and hopefully, the market can recover some of the skeptical beef-demand. Tuesday's slaughter is estimated at 119,000 head -- 2,000 head more than a week ago and 3,000 head less than a year ago.
Contracts closed higher, but the cash cattle market only bowed lower. Another light round of trade transpired in the North with prices ranging from $157 to $160 -- $1.00 to $7.00 lower than Monday's trade. A handful of cattle were traded in Texas but were mostly steady with Monday's trade although that's $3.50 lower than last week's average.
Boxed beef prices closed lower: choice down $0.72 ($227.89) and select down $1.18 ($213.17) with a movement of 187 loads (98.47 loads of choice cuts, 31.45 loads of select, 8.40 loads of trim and 48.38 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Lower. As much as I cringe when I say it, this week isn't going to be kind to the cash cattle market. Seeing that prices have segued lower from last week's averages already and continue to only trail lower throughout the week isn't a good sign for the second half of this week.
FEEDER CATTLE:
Feeder cattle contracts continued to rally hope, support and optimism. And, sure enough, the complex closed higher, while the countryside closed mixed. August feeders closed $1.70 higher at $132.87, September feeders closed $1.87 higher at $134.45 and October feeders closed $1.92 higher at $135.47. At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers and heifers sold steady to $3.00 higher, though 600- to 700-pound steers were $1.00 to $3.00 lower. Steer calves sold $3.00 to $5.00 lower, but weights under 450 pounds were not well tested. Heifer calves were steady to $4.00 lower. Demand was good to very good for feeder cattle, but only moderate for calves. Moisture is becoming an issue in much of the state, especially in the western part -- and chances of rain in the next week are slim. The CME feeder cattle index for 6/15/2020: up $0.27, $128.71.
LEAN HOGS:
The lean hog complex wasn't able to capture the same rally that the cattle contracts did but instead saw $1.00 to $2.62 losses throughout most of the market. The contracts may have closed lower, but looking at the movement of pork cuts is rather positive as grocery stores begin to stock shelves and consumers are able to buy the products they desire once again. July lean hogs closed $2.62 lower at $49.65, August lean hogs closed $2.25 lower at $53.02 and October lean hogs closed $1.50 lower at $51.72. Pork cutouts totaled 554.74 loads with 512.61 loads of pork cuts and 42.13 loads of trim. Pork cutout values: down $1.19, $64.27. Tuesday's slaughter is estimated at 458,000 head -- 14,000 head greater than a week ago and 20,000 head less than a year ago. The CME lean hog index for 6/12/2020: down $0.59 at $48.38.
WEDNESDAY'S CASH HOG CALL: Steady to lower. Steady to lower trends will be seen (unfortunately) until the market is current again.
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