GENERAL COMMENTS:
The feeder cattle market took Tuesday by storm as the grain market's descend gave feeders an opportunity to rally. Meanwhile, the lean hog market closed higher too as the cash market jumped over $4.00 higher. Hog prices closed $4.11 higher on the Daily Direct Afternoon Hog Report, which leads to a weighted average of $118.99 on 7,930 head. July corn is down 23 3/4 cents per bushel and July soybean meal is down $6.80. The Dow Jones Industrial Average is up 641.47 points.
LIVE CATTLE:
The live cattle market rounded out the day mostly lower, but even with the day's weaker move, August live cattle still closed on the upper end of last week's sideways chop. June live cattle closed $0.20 lower at $137.82, August live cattle closed $0.32 lower at $136.25 and October live cattle closed $0.12 lower at $142.30. Showlists are higher in all major feeding regions this week, but even with more cattle becoming readily available, prices are expected to hold at least steady as packers still need cattle. There were a handful of fats traded in Texas for $138.50, but it was on so few of head that no real trend was established. More business should develop in Wednesday's market.
Tuesday's slaughter is estimated at 126,000 head, 4,000 head more than a week ago and year ago. Monday's slaughter is estimated at 124,000 head, 4,000 head more than a week ago and 7,000 head more than a year ago.
Last week's negotiated cash cattle market totaled 107,080 head. Of that, 73% (78,001 head) were committed for nearby delivery, while the remaining 27% (29,079 head) were committed for deferred delivery.
Boxed beef prices are higher: choice up $1.06 ($267.56) and select up $0.31 ($246.70) with a movement of 143 loads (84.86 loads of choice, 37.13 loads of select, 13.46 loads of trim and 7.97 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Steady. Yes, showlists are higher this week and it's evident that cash fed fats have caught up with the market, but even with packers having bought 107,000 head last week, they still need more cattle and prices will likely be able to hold steady ground this week.
FEEDER CATTLE:
As the corn market plummeted $0.23 to $0.29 lower by the day's end, the feeder cattle contracts took the market's opportunity and ran $2.00 to $2.50 higher. The entire grain sector took a hit in Tuesday's market with wheat taking the biggest hit as it traded anywhere from $0.50 to $0.59 lower. Nevertheless, the grain market's weakness, combined with the robust support that the feeder cattle complex has seen, helped drive prices higher all through Tuesday's trade. Last week Superior's strong sale on the Corn Belt Classic set the market's tone for higher prices, and it's likely that Northern's Early Summer Special this Thursday solidifies the market's higher note. August feeders closed $2.35 higher at $175.30, September feeders closed $2.47 higher at $177.27 and October feeders closed $2.45 higher at $178.97. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers traded steady to $2.00 higher and feeder heifers traded $2.00 to $4.00 higher. Steer calves traded mostly steady, but heifer calves traded $3.00 to $6.00 higher. The CME Feeder Cattle Index for June 20: not available at this time.
LEAN HOGS:
Early in the day, the lean hog complex wasn't sure if it would scale back or commit to trading higher, but throughout the afternoon, as cash prices started to draw more attention, traders supported the contracts and led the market to a higher close. July lean hogs closed $1.72 higher at $112.72, August lean hogs closed $1.92 higher at $109.80 and October lean hogs closed $0.87 higher at $94.57. Pork cutout values weren't supportive as they rounded out the day lower, but with the Fourth of July less than two weeks away, most retailers do already have their needs at least committed for. Pork cutouts total 335.08 loads with 315.16 loads of pork cutouts and 19.92 loads of trim. Pork cutout values: down $1.01, $110.86. Tuesday's slaughter is estimated at 468,000 head, 1,000 head less than a week ago and 6,000 head less than a year ago. Monday's slaughter was revised to 449,000 head, 18,000 head less than what was originally stated. The CME Lean Hog Index for June 17: up $0.62, $109.16.
WEDNESDAY'S CASH HOG CALL: Steady. Prices were significantly higher by Tuesday's afternoon, but packers only got 7,930 head bought. Heading into Wednesday's market, it's likely that the cash market will see more interest as packers need to pick up some volume.
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