GENERAL COMMENTS
Livestock contracts weren't as audacious about trading higher Tuesday as they were later last week and sequentially closed lower in all three markets. On a brighter note, both cash markets closed higher. Cash hog prices closed $0.76 higher on the National Direct Afternoon Hog Report, with a weighted average of $29.29 on 12,323 head. December corn is down 3 3/4 cents per bushel and December soybean meal is down $2.90. The Dow Jones Industrial Average is down 396.85 points and NASDAQ is down 89.76 points.
LIVE CATTLE
Live cattle contracts kept with their hesitance and closed slightly lower Tuesday afternoon. August live cattle closed $0.10 lower at $100.00, October live cattle closed $0.25 higher at $104.17 and December live cattle closed $0.02 lower at $107.02. The market's indecisiveness has put a bit of a damper on the upward rally, but its trade in the next couple of days will solidify if prices are to keep trending upward or if they should scale lower. Tuesday afternoon there's been some light trade reported in the South with live cattle selling for $94 to $95, which is steady to $1.00 higher than last week's averages. Northern cattle have sold for $152 to $160 (mostly at $157 to $160), which is $3.00 to $6.00 higher than last week's prices. Tuesday's slaughter is estimated at 119,000 head, 2,000 head less than a week ago and 1,000 head less than a year ago. Monday's cattle slaughter was revised to 115,000 head.
Boxed beef prices closed lower: choice down $0.16 ($205.30) and select down $0.13 ($196.84) with a movement of 124 loads (68.84 loads of choice, 20.28 loads of select, 9.09 loads of trim and 25.57 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Steady. There hasn't been quite enough trade this week to call the market set in a trend, but trade is developing stronger, as oddly as that may sound. Coming out of the holiday weekend, packers are most likely caught a little shorter bought than they'd like.
FEEDER CATTLE
Feeder cattle contracts closed lower with nearby contracts enduring the biggest losses. August feeders closed $1.22 lower at $134.92, September feeders closed $0.90 lower at $136.32 and October feeders closed $0.60 lower at $137.25. At OKC West Livestock Auction, in El Reno, Oklahoma, the market's preliminary report is sharing that, compared to last week, steer and heifer calves are selling $2.00 to $5.00 better, with instances of even $8.00 stronger. Demand is excellent and quality is average to attractive. It's nerve wrecking for that part of the country right now as temperatures are high and there's no rain in the nearby forecast. The CME feeder cattle index 7/3/2020: up $0.10, $128.98.
LEAN HOGS
Cash hog prices closed $0.76 stronger on 12,323 head, but it wasn't enough to pull the board higher. Seeing that packers bought aggressively Tuesday afternoon leads one to believe that they intend to keep kills ramped up and were potentially short bought coming out of the holiday weekend. July lean hogs closed $0.42 lower at $44.52, August lean hogs closed $0.40 lower at $48.87 and October lean hogs closed $0.42 lower at $48.62.
Pork cutouts total 472.46 loads with 434.43 loads of pork cuts and 38.04 loads of trim. Pork cutout values: down $1.74, $62.60. Tuesday's slaughter is estimated at 469,000 head, steady with a week ago and 8,000 head less than a year ago. The CME lean hog index 7/2/2020: up $0.64, $45.02.
WEDNESDAY'S CASH HOG CALL: Slightly lower to steady. Seeing that Tuesday's afternoon prices were up considerably, the market may be apt to trade slightly lower on Wednesday. But it really depends on how many hogs packers need and how quickly they need them.
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