GENERAL COMMENTS:
It was a bewildering day for the livestock complex as the market continues to see ample fundamental support, but the outside pressure weighing against the markets simply was too much to bear Wednesday for the futures complex. Even so, feedlots didn't care what the futures complex did as they remained committed to marketing their cattle to the best of their ability and prices ranged anywhere from $3.00 to $10.00 higher in the North. Hog prices closed higher on the Daily Direct Morning Hog Report, up $0.98 with a weighted average price of $93.11 on 13,115 head. July corn is down 3 3/4 cents per bushel and July soybean meal is up $8.50. The Dow Jones Industrial Average is up 91.08 points.
LIVE CATTLE:
One would have logically thought that, with cash cattle prices reaching new all-time highs yet again this week, traders would have reacted positively and sent the live cattle contracts trading steady at bare minimum, if not higher. But because of external pressures weighing against the marketplace, the live cattle complex came up short in its aspirations to round out the day stronger. June live cattle closed $0.82 lower at $179.00, August live cattle closed $2.30 lower at $173.20 and October live cattle closed $2.62 lower at $175.62. Another light round of trade was reported in the North where Dressed cattle were selling for mostly $300 which is $10.00 higher than last week's weighted average. Live deals in the North were marked at $189 to $191, which is $3.00 to $5.00 higher than last week's weighted average. The South remained in a stiff stand off with packers as feedlots down there continue to hold out for higher prices.
Wednesday's slaughter is estimated at 124,000 head, 3,000 head less than a week ago and 1,000 head less than year ago.
Boxed beef prices closed higher: choice up $3.79 ($325.19) and select up $2.12 ($301.56) with a movement of 119 loads (65.26 loads of choice, 23.43 loads of select, 10.57 loads of trim and 19.44 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to somewhat higher. It's likely that prices will remain steady in the North, but with cattle not having been sold yet in the South, higher prices are likely in that region.
FEEDER CATTLE:
Corn prices may have rounded out the day $0.03 to $0.10 lower but that didn't help the feeder cattle complex as traders were too leery to do anything positive in the market Wednesday despite there being more than enough fundamental support to merit higher trade. August feeders closed $4.15 lower at $239.10, September feeders closed $4.25 lower at $242.27 and October feeders closed $4.27 lower at $244.55. Wednesday's depressed trade stems from a lack of support from traders as they bowed down to the external pressures of the trading complex -- not because anything has changed in terms of demand or cattle fundamentals. At Winter Livestock in Dodge City, Kansas, compared to last week, steers weighing 475 to 1,000 pounds sold anywhere from $15.00 to $25.00 higher. Feeder heifers weighing 600 to 750 pounds sold $15.00 to $25.00 higher. Slaughter cows sold $5.00 lower and slaughter bulls sold $2.00 lower. Feeder cattle supply over 600 pounds was 78%. The CME Feeder Cattle Index for June 6: up $0.63, $219.28.
LEAN HOGS:
The lean hog market was subject to the pressure that loomed over the complex Wednesday. Pork fundamentals remain supportive (higher cash, higher cutouts), which could mean that Thursday's market stands a chance at trading steady to somewhat higher, especially if a supportive export report is shared Thursday morning. June lean hogs closed $0.60 lower at $87.70, July lean hogs closed $1.40 lower at $86.92 and August lean hogs closed $1.40 lower at $83.10. Pork cutouts totaled 300.33 loads with 268.24 loads of pork cuts and 32.09 loads of trim. Pork cutout values: up $0.17, $85.15. Wednesday's slaughter is estimated at 462,000 head, 18,000 head less than a week ago and 16,000 head less than a year ago. The CME Lean Hog Index for June 5: up $0.65, $81.86.
THURSDAY'S HOG CALL: Steady to somewhat higher. Given that packers are still actively pursing hogs, and that pork cutout values are seeing a little more support, Thursday's market could see steady to somewhat higher prices.
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