GENERAL COMMENTS:
Thursday ended up being a mixed day for the livestock complex as the feeder cattle market charged higher and helped aid on higher trade throughout the live cattle contracts, but the lean hog market couldn't shake the fact that processing speeds have been lagging and demand hit and miss from consumers. Hog prices closed $2.27 lower on the Daily Direct Afternoon Hog Report, equating to a weighted average of $118.91 on 6,604 head. December corn is down 34 cents per bushel and December soybean meal is down $0.30. The Dow Jones Industrial Average is down 253.88 points.
LIVE CATTLE:
The live cattle market leaned on the feeder cattle market to help carry it higher throughout Thursday's trade and thankfully, it worked. The steep regression in corn prices helped the live cattle market trade slightly higher despite that the week's cash cattle market trade steady to $1.00 lower and on thin volumes. It's important to note, however, that the market is hovering at its nearby support plane and that next week a decision to hold steady or to break lower will likely be the market's focus. August live cattle closed $0.40 higher at $132.57, October live cattle closed $0.12 lower at $138.77 and December live cattle closed $0.25 higher at $144.87. The cash cattle market didn't see much more trade develop throughout the day as packers did most of their buying on Wednesday. A few head did trade in Texas for $137, but otherwise the market sat idle. Throughout the week, Southern live cattle have traded for $138, which is steady to $1.00 lower than last week. Northern dressed cattle have traded for $234, which is steady to $1.00 lower as well. Thursday's slaughter is estimated at 124,000 head, 2,000 head more than a week ago and 7,000 head more than a year ago.
Beef net sales of 17,000 mt for 2022 were up 52% from the previous week and 6% from the prior four-week average. The three largest buyers were South Korea (5,100 mt), China (4,500 mt) and Japan (2,000 mt).
Thursday's Actual Slaughter data shared that, for the week ending June 18, steers averaged 879 pounds which is steady with a week and year ago. Heifers averaged 810 pounds, which is 4 pounds lighter than the previous week and 3 pounds lighter than a year ago.
Boxed beef prices closed lower: choice down $0.88 ($264.00) and select down $0.24 ($240.57) with a movement of 102 loads (64.19 loads of choice, 20.81 loads of select, 9.13 loads of trim and 7.57 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady with the week. It's unlikely that Friday's market will see much interest given that it's the day before a long weekend and it's looking like packers have already gotten most of their buying done for the week.
FEEDER CATTLE:
The feeder cattle market had a turn and burn type of day as the corn market closed $0.20 to $0.35 lower thanks to multiple pressuring factors, but largely due to an unfavorable nearby weather outlook for the crop. Nevertheless, the corn market's weakness came at a perfect time for the feeder cattle market as, throughout the week, sales have seen excellent interest from buyers as they aggressively fill their orders this week knowing that next week sales will be closed for the Fourth of July holiday. August feeders closed $2.87 higher at $173.60, September feeders closed $2.45 higher at $176.22 and October feeders closed $2.27 higher at $178.67. At OKC West Livestock Auction in El Reno, Oklahoma, compared to last week, feeder steers under 850 pounds traded $1.00 to $3.00 higher, but those over 850 pounds traded $1.00 to $3.00 lower. Feeder heifers traded $2.00 to $5.00 lower. Steer calves traded $3.00 to $6.00 higher and heifer calves sold $2.00 to $4.00 higher. The CME Feeder Cattle Index for June 29: up $2.36, $166.44.
LEAN HOGS:
The lean hog market had a downward trending day as the complex continues to stress over waning processing speeds and the hit and miss interest in pork products. July lean hogs closed $0.27 lower at $109.12, August lean hogs closed $1.47 lower at $102.10 and October lean hogs closed $2.05 lower at $88.67. Thankfully the market had a supportive export report and pork cutout values did close higher for the day, but these supportive traits weren't enough to push traders into turning the market higher. Pork cutouts totaled 246.53 loads with 221.38 loads of pork cuts and 25.15 loads of trim. Pork cutout values: up $3.09, $108.56. Thursday's slaughter is estimated at 458,000 head, 7,000 head less than a week ago and 3,000 head more than a year ago. The CME Lean Hog Index for June 28: down $0.38, $111.26.
Thursday's Actual slaughter Data shared that, for the week ending June 18, live weights averaged 288 pounds (down 2 pounds from the week before) and dressed weights averaged 215 pounds (down 2 pounds from the previous week too).
Pork net sales of 32,300 mt for 2022 were up 27% from the previous week and from the prior four-week average. The three largest buyers were Mexico (20,700 mt), Japan (3,700 mt) and Australia (2,700 mt).
FRIDAY'S CASH HOG CALL: Lower. Given that Friday will be the last trading day for the week ahead of long-weekend, it's unlikely that the cash market sees much interest as packers will likely resume buying next week as opposed to chasing the market on Friday.
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