GENERAL COMMENTS:
It was a strong day for the livestock complex as all three of the markets closed higher but the cattle complex saw the most support as traders were thrilled to see stronger boxed beef demand. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.05 with a weighted average price of $90.83 on 6,385 head. July corn is down 5 cents per bushel and July soybean meal is up $6.80. The Dow Jones Industrial Average is up 126.60 points.
LIVE CATTLE:
The live cattle complex gained momentum throughout the day as traders were elated to see strong boxed beef interest. The market has been dearly missing the seasonal fundamental support that it's come to know and appreciate during this time from strong boxed beef sales, and truthfully some market participants were concerned that demand would arise at all given the inflation pressures that consumers are currently taxed with. But thankfully demand has increased, and the market celebrated that news. June live cattle closed $2.60 higher at $178.17, August live cattle closed $2.72 higher at $176.12 and October live cattle closed $2.52 higher at $179.35. No cash cattle trade developed throughout the day and trade will likely be delayed until sometime after Wednesday.
Tuesday's slaughter is estimated at 123,000 head -- 1,000 head less than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed higher: choice up $5.44 ($304.39) and select up $6.64 ($293.82) with a movement of 121 loads (64.83 loads of choice, 18.90 loads of select, 17.21 loads of trim and 20.42 loads of ground beef).
WEDNEDSAY'S CATTLE CALL: Steady to $1.00 higher. Packers will be reluctant to pay any more for cattle as they're dealing with thin margins as it is, but nor can they afford to be short-bought cattle if demand is increasing.
FEEDER CATTLE:
The feeder cattle complex didn't sleep on the good news as the market was elated to see strong boxed beef interest. Traders have been desperately longing for fundamental support to give them the 'go-ahead' to trade higher and seeing the stronger interest in boxed beef prices early this week has been just that. It was impressive to see the spot August contract close above its 40-day moving average and pressure the market's current trading range. May feeders closed $3.90 higher at $243.27, August feeders closed $4.32 higher at $255.67 and September feeders closed $4.40 higher at $256.62. The CME feeder cattle index 5/13/2024: up $0.39, $241.75.
LEAN HOGS:
The lean hog complex kept its higher trend through Tuesday's end as some of the cattle market's excitement seeped over into its complex. The market could be challenged to keep that higher trend come Wednesday morning, however, as afternoon pork cutout values did close slightly lower. All in all, I'd say pork cutout values closed mixed with half of the cuts finding higher afternoon prices, but the other half of the cuts did close lower, and with the belly dropping $4.85 lower, there was slightly more down pressure than upside support. June lean hogs closed $0.85 higher at $98.32, July lean hogs closed $0.87 higher at $100.92 and August lean hogs closed $0.62 higher at $99.90. Pork cutouts totaled 263.76 loads with 233.66 loads of pork cuts and 30.10 loads of trim. Pork cutout values: down $0.93, $101.51. Tuesday's slaughter is estimated at 480,000 head -- 2,000 head more than a week ago and 9,000 head more than a year ago. The CME lean hog index 5/10/2024: down $0.10, $91.22.
WEDNEDSAY'S HOG CALL: Steady to somewhat higher. Packers showed more interest in Tuesday's cash market, but it's likely that they'll still need to procure more hogs than what they solely bought in today's market.
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