GENERAL COMMENTS:
The lean hog complex was the only livestock market able to close slightly higher as the market has seemed to find a bottom for its current move. Meanwhile both the live cattle and feeder cattle markets closed lower as traders patiently waited for some fundamental support to develop throughout the day's trade, but unfortunately, none surfaced. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.69 with a weighted average price of $87.36 on 3,189 head. July corn is down 6 1/2 cents per bushel and July soybean meal is down $5.50. The Dow Jones Industrial Average is down 358.77 points.
LIVE CATTLE:
The market continued to trade lower throughout Thursday's complex as the announcement that China has banned beef imports from the JBS packing plant in Greeley, Colorado as traces of ractopamine were found in some meat that was destined for the country weighs heavily on the market. The plant will likely have to undergo some further testing and jump through some hoops before China lifts the ban, but in the meantime, the market has elected to react negatively which was displayed throughout today's trade. There was a handful of cattle traded in the South at $186, which is $1.00 lower than last week's weighted average, but the North continues to hold out for better money. Bids of $300 were offered throughout the day, but feedlots let that offer grow cold and sit on the table. Asking prices for cattle left on showlists in the South remain firm at $189 to $191, and asking prices in the North are still not well established. June live cattle closed $0.80 lower at $182.55, August live cattle closed $0.42 lower at $179.77 and October live cattle closed $0.32 lower at $182.12.
Thursday's slaughter is estimated at 125,000 head -- 3,000 head more than a week ago and steady with a year ago.
Boxed beef prices closed higher: choice up $0.42 ($314.04) and select up $0.04 ($302.52) with a movement of 137 loads (94.77 loads of choice, 22.05 loads of select, 6.88 loads of trim and 13.24 loads of ground beef).
FRIDAY'S CATTLE CALL: Higher. Given that only a thin movement of cattle traded throughout Thursday's space, it's likely that packers will have to give more money for the cattle they intend to buy on Friday.
FEEDER CATTLE:
With doggish, dreary tones hanging over the cattle complex throughout Thursday's trade, the feeder cattle market continued to trade lower through the day's end. August feeders closed $1.17 lower at $259.07, September feeders closed $1.12 lower at $260.67 and October feeders closed $1.10 lower at $261.45. The spot August contract did close below its 100-day moving average, which is a threshold that typically signals strength and support, and we should continue to monitor the market's relationship with that moving average. At La Junta Livestock Commission in La Junta, Colorado compared to last week feeder steers under 600 pounds sold $1.00 to $5.00 lower. Feeder steers weighing over 600 pounds sold $9.00 to $18.00 higher. And feeder heifers sold mostly $3.00 to $16.00 higher across all weight groups. Breaker slaughter cows sold $16.00 higher, boner cows sold $8.00 higher and lean cows sold $10.00 higher. Slaughter bulls sold $6.00 lower. Feeder cattle supply over 600 pounds was 39%. The CME feeder cattle index 5/29/2024: not available at this time.
LEAN HOGS:
The lean hog complex found some support in Thursday's market as it seems as though a new bottom may have been found technically for the market's current move. Unfortunately, the bad news of the day is that once again pork cutout values closed lower, which won't give traders any additional support. The carcass price stood little chance of closing higher as the loin fell $3.95, the rib fell $3.94 lower and the belly alone dropped $4.08 lower. The market is hoping to see better pork demand in Friday's export report -- but it's holding its breath on that idea as demand in all markets has been hard-pressed lately. Pork cutouts totaled 309.40 loads with 266.96 loads of pork cuts and 42.44 loads of trim. Pork cutout values: down $1.66, $101.74. Thursday's slaughter is estimated at 487,000 head -- 7,000 head more than a week ago and 10,000 head more than a year ago. The CME lean hog index 5/28/2024: down $0.47, $90.79.
FRIDAY'S HOG CALL: Lower. With demand lagging, it's not likely that packers will pay much interest to Friday's cash market.
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