GENERAL COMMENTS:
It was a mostly quiet day for the livestock complex with only the feeder cattle contracts able to close higher without a hitch. With economic concerns in play, demand for both pork and beef are key factors that the market is monitoring. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.37 with a weighted average price of $89.78 on 1,472 head. July corn is up 2 3/4 cents per bushel and July soybean meal is down $5.40. The Dow Jones Industrial Average is down 81.33 points.
LIVE CATTLE:
The live cattle complex grew weary as the day traded on and wasn't able to keep the momentum that the market had built earlier in the day. Weighing all of today's factors leaves one in a mixed position as it's fantastic to see boxed beef prices sharply higher but seeing that today's slaughter is only at 116,000 head is concerning that packers are ratcheting back processing speeds and won't need as many cattle from the cash cattle market in the weeks ahead. The factors of beef demand and throughput remain key factors through this week's trade. June live cattle closed $0.57 lower at $175.57, August live cattle closed $0.72 at $173.40 and October live cattle closed $0.60 lower at $176.82. New showlists appear to be higher in all major feeding states.
Monday's slaughter is estimated at 116,000 head -- 4,000 head less than a week ago and 8,000 head less than a year ago.
Boxed beef prices closed higher: choice up $4.38 ($298.95) and select up $3.01 ($287.18) with a movement of 113 loads (67.93 loads of choice, 14.44 loads of select, 4.62 loads of trim and 25.91 loads of trim).
TUESDAY'S CATTLE CALL: Lower. With processing speeds dialed back Monday afternoon, I'm concerned that packers are going to slow down production to lessen their need in the cash complex.
FEEDER CATTLE:
The feeder cattle complex continued to trade higher through Monday's close as it continues to be the leader in this upward quest. May feeders closed $0.57 higher at $239.37, August feeders closed $0.45 higher at $251.35 and September feeders closed $0.25 higher at $252.22. If boxed beef prices continue to trade higher the market could see a shot of enthusiasm enter its sector and keep traders engaged. At Joplin Regional Stockyards in Carthage, Missouri compared to last week and at the report's midsession point, feeder steers were selling $5.00 lower to $12.00 higher and feeder heifers were trading steady to $8.00 higher. Feeder cattle supply over 600 pounds was 44%. The CME feeder cattle index 5/10/2024: up $0.75, $241.36.
LEAN HOGS:
The lean hog complex ran out of steam quickly as the market attempted to trade higher early Monday morning but quickly fell into the trap of trading lower which is how the complex rounded out the day. The market has become comfortable trading in a sideways trading range and until some substantial support develops fundamentally, it's unlikely that the market breaks out of this range. June lean hogs closed $0.90 lower at $97.47, July lean hogs closed $1.40 lower at $100.05 and August lean hogs closed $1.30 lower at $99.27. Pork cutout values were encouraging as most of the cuts closed higher, but again the carcass price was most affected by the belly as it rallied $8.72. Pork cutouts totaled 267.03 loads with 238.46 loads of pork cuts and 28.57 loads of trim. Pork cutout values: up $2.67, 102.44. Monday's slaughter is estimated at 461,000 head -- 20,000 head less than a week ago and 2,000 head less than a year ago. The CME lean hog index 5/9/2024: up $0.04, $91.32.
TUESDAY'S HOG CALL: Higher. It's likely that packers will show the market more interest on Tuesday as they'll need to secure inventory for the week.
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