GENERAL COMMENTS:
The livestock complex traded gingerly Tuesday, but ahead of closing traders focused on the market's strong fundamentals and led the contracts to higher price points ahead of the day's final bell. No cash cattle trade was reported throughout Tuesday's market as feedlots are current and will let time pass by again this week before they worry about marketing cattle. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.85 with a weighted average price of $94.09 on 13,341 head. July corn is down 4 3/4 cents per bushel and July soybean meal is up $0.10. The Dow Jones Industrial Average is up 137.62 points.
LIVE CATTLE:
The live cattle market traded cautiously throughout Tuesday but, ahead of the day's end, traders clung to the market's strong fundamentals and drove prices higher. No cash cattle trade has been reported yet, and with packers being extremely aggressive in last week's cash market, it's tough telling with this week's trade will amount to. Prices will likely remain at least steady as feedlots are extremely current, and packers are continuing to be incentivized by incredibly higher beef demand. August live cattle closed $0.72 higher at $173.92, October live cattle closed $0.55 higher at $177.02 and December live cattle closed $1.00 higher at $180.50.
Tuesday's slaughter is estimated at 126,000 head, 1,000 head more than a week ago and 2,000 head more than a year ago.
Boxed beef prices closed higher: choice up $0.56 ($337.99) and select down $0.76 ($309.48) and with a movement of 137 loads (62.98 loads of choice, 32.69 loads of select, 24.98 loads of trim and 15.88 loads of ground beef).
WEDNEDSAY'S CATTLE CALL: Steady. With packers having bought close to 110,000 head last week, it's a coin toss on what prices will do this week.
FEEDER CATTLE:
The feeder cattle complex closed higher as traders elected to focus on the market's strong fundamentals instead of fixating their attention on the corn market's slight rally. After trading slightly lower late last week, traders now have some room to breathe before they're pressured again to either climb to new highs or continue to chop sideways. Northern Livestock Video auction will host their first big summer sale next week which could provide the market with the added shot of courage that it needs. August feeders closed $1.40 higher at $240.45, September feeders closed $1.32 higher at $243.40 and October feeders closed $1.17 higher at $245.30. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers traded uneven, but mostly steady while feeder heifers sold $2.00 to $5.00 higher. Heifer and heifer calves sold $4.00 to $6.00 lower. The quality of cattle this week wasn't as attractive as last week, with more average, commodity-based cattle. Feeder cattle supply over 600 pounds was 61%. The CME Feeder Cattle Index for June 12: not available at this time.
LEAN HOGS:
The lean hog complex endured a mixed close with the market's nearby contracts closing just slightly lower while the market's deferred contracts closed higher. With the amount of fundamental support that the market provided by Tuesday's end, the market could certainly trade higher on Wednesday so long as packers remain active in the market and pork demand holds. With all market participants still unsure of how Prop 12 is going to entirely effect the market, there is a level of uncertainty that continues to loom throughout the hog sector, regardless of fundamental ques. July lean hogs closed $1.00 lower at $90.60, August lean hogs closed $0.05 higher at $87.42 and October lean hogs closed $0.30 higher at $78.30. Pork cutouts totaled 385.15 loads with 340.29 loads of pork cuts and 44.86 loads of trim. Pork cutout values: up $1.32, $89.52. Tuesday's slaughter is estimated at 470,000 head, 1,000 head more than last week but steady with a year ago. The CME Lean Hog Index for June 9: up $0.45, $84.73.
WEDNESDAY'S HOG CALL: Higher. With pork cutout values showing continued support, hog prices could be higher again on Wednesday.
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