GENERAL COMMENTS:
All three markets closed predominantly higher with the biggest resistance seen in the nearby live cattle contracts. Feeder cattle contracts didn't bat an eye at trading throughout the day, and as the afternoon advanced, the lean hog complex became more favorable to producers. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.45 with a weighted average of $30.45 on 8,887 head. December corn is down 8 1/4 cents per bushel and December soybean meal is down $8.40. The Dow Jones Industrial Average is up 10.50 points and NASDAQ is down 226.60 points.
LIVE CATTLE:
Live cattle contracts closed the day with pressure holding back the nearby contracts, but the deferred months were able to close modestly higher. August live cattle closed $0.37 lower at $104.20, December live cattle closed $0.02 lower at $108.37 and February live cattle closed $0.10 higher. Feeders have set their asking prices at mostly $101 for live cattle and at $162 for dressed cattle. Packers inquired on cattle throughout feeding country, but bids have yet to hit the table. If this week aligns with how the past couple of weeks have trended, packers could start being more aggressive as early as Tuesday. Monday's slaughter is estimated at 118,000 head, 3,000 head more than a week ago and 2,000 head less than a year ago.
*Friday's cattle slaughter was revised to 116,000 head and Saturday's slaughter was revised to 67,000 head. Totaling 657,000 head for the week, not 664,000 head, which was originally printed.
Boxed beef prices closed lower: choice down $1.24 ($203.26) and select down $2.41 ($191.88) with a movement of 119 loads (61.45 loads of choice, 31.77 loads of select, 14.35 loads of trim and 11.11 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady. Pinpointing if prices will be steady or modestly higher is tricky. There are still enough cattle throughout the countryside for prices to be volatile and depressed, but with packers buying upwards of 119,000 head last week, and over 100,000 head the previous week, they aren't being gun shy.
FEEDER CATTLE:
Feeder cattle contracts rallied throughout the day, closing Monday mostly $1.00 higher throughout the complex. August feeders closed $1.30 higher at $137.05, September feeders closed $0.75 higher at $138.07 and October feeders closed $1.02 higher at $139.52. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week, steer and heifer calves under 500 pounds sold steady to $5.00 lower, calves over 500 pounds and yearlings sold steady, except those heavier feeder steers weighing 750 to 850 pounds, which sold steady to $3.00 higher. Unfortunately, heat and humidity continue to be an issue for the state of Missouri and for most of the nation, as this hot weather is putting tremendous stress on the cattle; zapping the life out of pastures and raising concerns about this upcoming winter's feed costs. The CME feeder cattle index 7/10/2020: up $0.25, $135.17.
LEAN HOGS:
The lean hog complex grew in strength as the day progressed and closed mostly higher. August lean hogs closed $1.40 higher at $51.27, October lean hogs closed $0.50 higher at $50.35 and December lean hogs closed $0.10 stronger at $51.87. The complex was also complimented with a stronger cash market that has been quite active over the last week as the industry has steadily worked at higher cash prices. Pork cutouts totaled 319.11 loads with 292.16 loads of pork cuts and 26.95 loads of trim. Pork cutout values: down $1.43, $67.52. Monday's slaughter is estimated at 454,000 head, 2,000 head more than a week ago and 43,000 head more than a year ago. The CME lean hog index 7/9/2020: up $0.15, $45.33.
*Friday's slaughter was revised to 460,000 head and Saturday's slaughter was revised to 276,000 head, totaling 2,593,000 head for the week.
TUESDAY'S CASH HOG CALL: Steady. Hog prices have been working towards trending on the upper end of steady, with a day of higher prices, followed by modestly lower prices to really amount to slow progression, but progression none the less. The biggest aid to the hog market has been the industry's slaughter pace, which is contributing to packers needing more hogs.
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