GENERAL COMMENTS:
It was another good day for the cattle complex as traders are thrilled to see continued boxed beef demand, but the lean hog complex is struggling as its market isn't seeing the consumer demand it had hoped for. No cash cattle trade has developed yet, and trade will likely be delayed until Thursday or Friday. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.77 with a weighted average price of $88.20 on 5,703 head. July corn is down 2 1/2 cents per bushel and July soybean meal is down $1.80. The Dow Jones Industrial Average is up 66.22 points.
LIVE CATTLE:
The live cattle complex traded higher throughout Tuesday's market as demand is sufficient and traders are seeing more than enough fundamental support to justify advancing the futures contracts. June live cattle closed $1.50 higher at $182.97, August live cattle closed $1.87 higher at $180.42 and October live cattle closed $1.32 higher at $183.15. The cash cattle market will be interesting to watch this week as packers have bought a plethora of cattle over the last month, but in order to have enough meat to market to retailers in this hot market environment, they can't afford to be short bought. Asking prices in the South are noted at $188 to $190 but are not yet established in the North.
Tuesday's slaughter is estimated at 122,000 head -- 1,000 head less than a week ago and 6,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.32 ($313.02) and select up $1.52 ($300.87) with a movement of 100 loads (60.93 loads of choice, 16.43 loads of select, 8.64 loads of trim and 13.76 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. Given that demand is remaining strong, cash cattle prices could trade higher again this week.
FEEDER CATTLE:
With the support of a higher trading live cattle complex, higher boxed beef prices and weaker corn prices, it was an easy decision for the feeder cattle complex to trade higher throughout Tuesday's market. What's also been extremely supportive to the feeder cattle sector is the continued support of strong demand in the countryside. With breeding season upon most spring calving herds, there has been an uptick in prices for heifer calves that could be bred this spring. May feeders closed $2.15 higher at $248.95, August feeders closed $1.35 higher at $259.82 and September feeders closed $1.47 higher at $261.12. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week steers sold $3.00 to $6.00 higher and heifers sold $4.00 to $8.00 higher. Light weight heifers sold up to $12.00 higher. Feeder cattle supply over 600 pounds was 80%. The CME feeder cattle index 5/21/2024: not available at this time.
LEAN HOGS:
It was another day of lower-trending trade for the lean hog complex as pork demand continues to be lagging. But today's lower carcass price wasn't because of a steep fall in the belly, but instead mostly because of the $4.60 decline in the loin, although the picnic and belly both fell for more than a $1.00 lower as well. At this point, unless pork demand increases, the market's trend could be lower for the near future. June lean hogs closed $0.52 lower at $96.40, July lean hogs closed $0.62 lower at $99.32 and August lean hogs closed $0.62 lower at $98.57. Pork cutouts totaled 297.71 loads with 260.59 loads of pork cuts and 37.12 loads of trim. Pork cutout values: down $1.08, $100.69. Tuesday's slaughter is estimated at 480,000 head – steady with a week ago and 4,000 head more than a year ago. The CME lean hog index 5/17/2024: down $0.07, $92.22.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Packers were slightly more aggressive in Tuesday's market, but will likely still need to procure more hogs in Wednesday's market.
No comments:
Post a Comment