GENERAL COMMENTS:
The lean hog complex ran higher through Friday's end, but both the live cattle and feeder cattle contracts closed mixed as their markets weren't as widely supported. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $8.60 with a weighted average price of $85.52 on 1,208 head. July corn is down 6 cents per bushel and July soybean meal is down $6.80. The Dow Jones Industrial Average is up 43.63 points.
From Friday to Friday, livestock futures scored the following changes: June live cattle up $1.80, August live cattle down $1.05; August feeder cattle down $2.90, September feeder cattle down $3.30; June lean hogs up $1.15, July lean hogs up $4.97; July corn down $0.05, September corn down $0.11.
LIVE CATTLE:
What a week! The live cattle complex was thrown some curve balls midweek as traders elected to fixate their attention on the market's outside pressures instead of focusing on the market's tremendous fundamental support. However, by Friday's end, the live cattle contracts were able to close mixed and traders' wishy-washy nature didn't affect cash prices whatsoever. June live cattle closed $0.55 lower at $178.22, August live cattle closed $0.40 lower at $171.85 and October live cattle closed $0.10 higher at $174.80.
Heading into next week's market, it will be imperative to see how many cattle bought this week were committed to the deferred delivery option. Packers are desperately wanting to get a foothold on this market and, if they were able to commit a large portion of this week's purchase to the three- to four-week delivery option, then they could be slowing gaining ground. Regardless of whether they did or didn't, the fact remains that front-end supplies of market-ready cattle are incredibly thin and that the market's impeccable beef demand will keep them more engaged in the cash sector than what they'd ideally like. Throughout the week, Northern dressed cattle traded for $290 to $304, but mostly at $300, which is $10.00 higher than last week's weighted average. Southern live cattle traded for $184 to $191, but mostly $185, which is $7.00 to $8.00 higher than last week's weighted averages.
Friday's slaughter is estimated at 120,000 head, 4,000 head less than a week and year ago. Saturday's slaughter is projected to be around 6,000 head. This week's slaughter is estimated at 621,000 head, incomparable to last week but 50,000 head less than a year ago.
Boxed beef prices closed higher: choice up $4.20 ($332.90) and select up $1.61 ($305.71) with a movement of 81 loads (47.72 loads of choice, 19.02 loads of select, 4.14 loads of trim and 10.41 loads of ground beef).
MONDAY'S CATTLE CALL: Steady to somewhat higher. It's a tough telling whether or not cash cattle prices will be higher next week as prices have jumped nearly $20 higher over the past two weeks.
FEEDER CATTLE:
The nearby feeder cattle contracts were able to round out the day higher thanks to the corn market's weaker close, and thanks to the continued support of the cash cattle market. Outside pressures robbed the feeder cattle complex of trading higher on Wednesday and Thursday, but by the time Friday rolled around, traders couldn't help but trade the bullish nature of fat cattle prices or the prices that feeder cattle are continuing to bring in the countryside. August feeders closed $0.35 higher at $239.00, September feeders closed $0.22 higher at $241.70 and October feeders closed $0.05 higher at $243.50. The Oklahoma Weekly Cattle Auction summary shared that, compared to last week, feeder steers and heifers traded $10.00 to $15.00 higher and feeder heifers sold $8.00 to $12.00 stronger. Steer and heifer calves sold mostly steady. Slaughter cows sold steady to $3.00 lower and slaughter bulls sold steady. Feeder cattle supply over 600 pounds was 62%. The CME Feeder Cattle Index for June 8: unavailable at this time.
LEAN HOGS:
The lean hog complex rallied throughout Friday's market as both traders and producers viewed the day's WASDE report as mostly neutral, but were thankful to see an increase in 2023 pork production as that likely means that packers will need to stay engaged in the cash market. Pork cutout values were also able to close higher as a $3.01 gain in the picnic offset the $2.50 drop in the belly. Nevertheless, heading into next week's market, traders could be challenged to keep their recent upward momentum, but may be able to do so if pork prices remain supported and if packers show the cash market as much interest as they did this past week. July lean hogs closed $2.42 higher a $89.62, August lean hogs closed $1.52 higher at $83.95 and October lean hogs closed $0.92 higher at $75.37. Pork cutouts totaled 290.71 loads with 264.71 loads of pork cuts and 26.00 loads of trim. Pork cutout values: up $0.53, $85.68. Friday's slaughter is estimated at 458,000 head, 8,000 head less than a week ago and 11,000 head more than a year ago. Saturday's slaughter is projected to be around 48,000 head. The CME Lean Hog Index for June 7: up $0.76, $83.80.
MONDAY'S HOG CALL: Higher. Packers were hardly engaged in Friday's cash market after having supported the complex rather aggressively throughout the week. Come Monday, packer interest could perk back up as they're having to buy more hogs than originally assumed to offset the decline in carcass weights.
No comments:
Post a Comment