GENERAL COMMENTS:
The cattle contracts closed mixed as traders continue to monitor the corn complex closely, but the lean hog complex was able to round out the day fully higher. Hog enthusiasts are especially anxious to see what Thursday's Quarterly Hogs and Pigs report unveils as it could provide some insight into pork supplies. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.07 with a weighted average price of $92.97 on 1,616 head. December corn is up 1/4 cent per bushel and December soybean meal is up $0.60. The Dow Jones Industrial Average is down 12.72 points.
LIVE CATTLE:
The live cattle complex closed mixed with the vast majority of the market's nearby contracts closing lower while the deferred contracts closed higher. As traders appraised the marketplace on Monday, they remained semi-hesitant as they don't know what to expect of cash prices this week and as the corn complex remains extremely volatile. But at the same time, showlists are lighter this week and even though boxed beef prices are seeing some seasonal pressure, prices are still incredibly high and demand remains strong. August live cattle closed $0.17 lower at $170.60, October live cattle closed $0.47 lower at $174.02 and December live cattle closed $0.32 lower at $178.37. No bids or asking prices were listed throughout the day and trade is expected to be delayed until Wednesday or later. New showlists appear to be lower in all major feeding states. Friday's slaughter is estimated at 125,000 head, 1,000 head less than a week ago but steady with a year ago.
Last week a light trade took place Tuesday through Thursday, with just a little cleanup on Friday. Southern live deals were marked at $174 to $182, mostly $180, $2 lower than the prior week's weighted averages. Northern dressed deals had a full range of $280 to $292, mostly $290, $6 lower than the previous week's weighted averages. Last week's negotiated cash cattle trade totaled 79,149 head. Of that, 73% (57,888 head) were committed to the nearby delivery while the remaining 27% (21,261 head) were committed to the deferred delivery.
Boxed beef prices closed lower: choice down $0.97 ($333.04) and select down $0.29 ($299.67) with a movement of 82 loads (40.13 loads of choice, 21.08 loads of select, 9.29 loads of trim and 11.52 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Packers have successfully worked cash prices lower over the course of the last two weeks, but showlists are lighter this week and feedlots may be able to hold prices steady if they remain determined.
FEEDER CATTLE:
Even though the nearby feeder cattle contracts closed steady to $0.06 higher, the feeder cattle complex closed mixed with the market's nearby contracts enduring slight losses while the deferred contracts closed modestly higher. Given the fact that last Friday's COF report showed a higher-than-expected volume of placements in May than what analyst's anticipated, and that corn prices closed higher, it's commendable that feeders were able to close higher at all. But as traders and cattlemen alike view the marketplace, it seems as though they're finding more value in the market's fundamentals and continue to believe that the 2023 bullish cattle market has more in store for prices despite the fact that some seasonal pressure is building. August feeders closed $0.27 lower at $233.67, September feeders closed $0.20 lower at $237.50 and October feeders closed $0.05 lower at $240.10. At Joplin Regional Stockyards in Carthage, Missouri compared to last week feeder steers at their midsession point were selling $5.00 to $10.00 higher and feeder heifers were selling steady. Feeder cattle supply over 600 pounds was 72%. The CME Feeder Cattle Index for June 23: unavailable at this time.
LEAN HOGS:
The lean hog complex had a tremendous day as the market's contracts were able to close higher and pork cutout values closed $2.19 higher by the day's end. The market is anxiously awaiting to see what Thursday's Quarterly Hogs and Pigs report unveils as it could help provide some insight into what pork supply the market could expect in the months ahead. The biggest contributor to Monday's higher carcass close was the butt cut as it rounded out the $6.83 higher, but then was closely followed by the rib which gained $5.26. The cash side of the market lent little support as very few hogs traded. July lean hogs closed $2.12 higher at $93.40, August lean hogs closed $0.37 higher at $90.05 and October lean hogs closed $0.25 higher at $80.22. Pork cutouts totaled 258.37 loads with 233.76 loads of pork cuts and 24.62 loads of trim. Pork cutout values: up $2.19, $99.55. Friday's slaughter is estimated at 440,000 head, 19,000 head more than a week ago and 20,000 head more than a year ago. The CME Lean Hog Index for June 22: up $0.94, $91.41.
TUESDAY'S HOG CALL: Steady to somewhat higher. Given that Monday's cash market saw very few hogs traded, it's likely that Tuesday's market sees a bigger volume.
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