GENERAL COMMENTS:
The cattle contracts struggled throughout the day as traders seemed hesitant, but the lean hog complex rallied. There was a small handful of cattle traded in the North, but largely the market remains untested as feedlots hold out for better offers. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.17 with a weighted average price of $94.26 on 23,150 head. July corn is down 4 3/4 cents per bushel and July soybean meal is down $7.80. The Dow Jones Industrial Average is down 232.79 points.
LIVE CATTLE:
The live cattle complex closed lower as traders seem to be questioning if the market needs to correct somewhat. Even though the futures complex is enduring some pressure, its cautious nature hasn't spilled over onto the cash cattle market as, largely, feedlots continue to hold out for better bids. There was a handful of live cattle traded in the North for $181 to $188, and even fewer dressed cattle traded but they sold for $287 to $300, but the cash cattle market hasn't been traded whatsoever. Packer interest will likely improve on Thursday as packers don't want to be short bought coming out of this week. August live cattle closed $2.95 lower at $170.97, October live cattle closed $2.90 lower at $174.12 and December live cattle closed $2.85 lower at $177.60.
Wednesday's slaughter is estimated at 126,000 head, 2,000 head more than a week ago and 1,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $1.07 ($339.06) and select down $0.22 ($309.26) with a movement of 97 loads (54.01 loads of choice, 26.21 loads of select, 3.86 loads of trim and 13.37 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Given that feedlots have been able to advance the cash market nearly $20.00 over the course of the last two weeks, it could mean that this week's market trades merely steady as packers only buy enough cattle to fulfill their needs.
FEEDER CATTLE:
Even though the nearby corn contracts closed $0.01 to $0.04 lower, the feeder cattle complex rounded out the day mostly $4.00 lower. The live cattle complex wasn't much help as its market closed lower too and as the week's cash cattle trade has been slow to start. More than anything, it's seeming like traders are feeling somewhat exhausted and could elect to allow the contracts to correct slightly or chop sideways unless something incredibly bullish erupts. August feeders closed $4.55 lower at $235.90, September feeders closed $4.27 lower at $239.12 and October feeders closed $4.10 lower at $241.20. At Kingsville Livestock Auction in Kingsville, Missouri, compared to last week, and on a run of 4,321 head, feeder steers and heifers sold mostly steady, but a few select loads sold upwards of $5.00 higher on yearling steers. Demand was good again this week for another sale heavy with supply, but more unweaned calves were noticed this week. Feeder cattle supply over 600 pounds was 41%. The CME Feeder Cattle Index for June 13: up $0.05, $228.25.
LEAN HOGS:
The lean hog complex was the only livestock market able to round out the day higher as it celebrated both technical and fundamental wins throughout the day. It was rather surprising to see over 23,000 head of hogs traded in the cash market as packers have been relatively aggressive in the market earlier this week. Wednesday afternoon's carcass price was able to close higher thanks to the $3.91 gain in the butt and the $3.31 gain in the rib, which more than offset the slight decreases in the ham, belly and picnic. July lean hogs closed $2.17 higher at $92.77, August lean hogs closed $2.25 higher at $89.67 and October lean hogs closed $1.57 higher at $79.87. Pork cutouts totaled 297.82 loads with 244.25 loads of pork cuts and 53.58 loads of trim. Pork cutout values: up $0.16, $89.68. Wednesday's slaughter is estimated at 465,000 head, 3,000 head more than a week ago and 4,000 head less than a year ago. The CME LeAn Hog Index for June 12: up $0.68, $85.41.
THURSDAY'S HOG CALL: Lower. Given that packers bought a plethora of hogs Wednesday, it's likely that Thursday's market is lower.
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