GENERAL COMMENTS:
It was a thrilling day for the livestock complex as all three of the markets closed higher and are eager to see what Wednesday's market offers. Bids were offered throughout the cash cattle market, but no substantial trade developed. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $6.84 with a weighted average price of $92.13. July corn is up 10 1/2 cents per bushel and July soybean meal is down $4.50. The Dow Jones Industrial Average is up 10.42 points.
LIVE CATTLE:
It was another invigorating day for the live cattle complex as the contracts traded higher all throughout the day and surprisingly enough, packers began to offer up some bids around Tuesday's noon hour. A few head of cattle have traded in the North from $292 to $300, but it's not on a big enough sampling to say that any sort of market trend is set. However, it is telling for packers to begin to place bids this early as Tuesday afternoon as it indicates that they're still short bought and in desperate need of cattle. After prices jumped $7.00 to $9.00 higher last week, one would have thought that packers would have been fighting tooth and nail to avoid the cash market at all costs this week, but obviously they still didn't get enough cattle bought and intend to buy as early as possible this week. Substantial business won't likely develop until late Wednesday or Thursday as feedlots want to run prices as high as possible while the opportunity lasts. June live cattle closed $2.67 higher at $179.82, August live cattle closed $2.22 higher at $175.50 and October live cattle closed $1.92 higher at $178.25.
Tuesday's slaughter is estimated at 125,000 head, 1,000 head less than both a week and year ago.
Boxed beef prices closed higher: choice up $7.21 ($321.40) and select up $2.71 ($299.44) with a movement of 126 loads (74.44 loads of choice, 23.46 loads of select, 8.47 loads of trim and 19.52 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. It's tough telling just how much the market could advance again this week, but packers are obviously still in need of cattle if they're offering up bids as early as Tuesday's noon hour.
FEEDER CATTLE:
Even though the nearby corn contracts closed $0.04 to $0.10 higher, the feeder cattle complex pressed onward and traded higher through Tuesday's end. August feeders closed $0.65 higher at $243.25, September feeders closed $0.90 higher at $246.52 and October feeders closed $1.17 higher at $248.82. Starting Wednesday morning Superior will be broadcasting their Corn Belt Classic sale where roughly 65,000 head are set to sell. The market will anxiously be waiting to see what feeder cattle prices bring, especially those for the fall delivery. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers sold $10.00 to $15.00 higher, and feeder heifers traded $8.00 to $10.00 higher. Steer calves sold $10.00 to $20.00 higher and heifer calves sold steady to $5.00 higher. Feeder cattle supply over 600 pounds was 66%. The CME Feeder Cattle Index for June 5: not available at this time.
LEAN HOGS:
The lean hog complex grew stronger throughout Tuesday's market and closed anywhere between $1.00 to $4.00 higher. But putting your finger on why exactly the market closed higher remains the challenging component. Yes, cash hog prices jumped higher, but pork cutout values closed over $4.00 lower. If it weren't for the $23.78 decline in the belly pork cutout values would have likely only closed $1.00 to $2.00 lower, but it's tough to keep the carcass price stable when the belly is that volatile. But even still, hog prices closed higher, and traders are seeming to believe that the market over did its downward ascend as they continue to drive prices higher. June lean hogs closed $2.97 higher at $88.30, July lean hogs closed $4.17 higher at $88.32 and August lean hogs closed $2.87 higher at $84.50. Pork cutouts totaled 332.99 loads with 315.84 loads of pork cuts and 17.15 loads of trim. Pork cutout values: down $4.08, $84.98. Tuesday's slaughter is estimated at 469,000 head, 11,000 head less than a week ago and 7,000 head less than a year ago. The CME Lean Hog Index for June 2: up $0.69, $81.21.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Packers continue to drive cash prices higher especially in Iowa/Minnesota and in the Western Corn Belt, as they obviously are short bought.
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