GENERAL COMMENTS:
It was a strong day for the cattle complex as traders advanced both the live cattle and feeder cattle markets, but the lean hog market remains apprehensive about trading higher as demand hasn't consistently been strong. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.19 with a weighted average price of $87.83 on 3,095 head. July corn is down 2 1/4 cents per bushel and July soybean meal is down $9.90. The Dow Jones Industrial Average is down 216.73 points.
LIVE CATTLE:
All in all, it was another positive, powerful day for the live cattle complex as the market again closed higher seeming to follow behind the aggressive momentum in the feeder cattle complex. June live cattle closed $0.85 higher at $184.55, August live cattle closed $0.70 higher at $181.82 and October live cattle closed $0.45 higher at $184.40. So long as beef demand continues to show strong interest, it's likely that the futures complex will be well supported as the cash cattle market is expected to trade steady to somewhat higher again this week. The fact remains that feedlots hold the lion's share of the market's leverage and if they aren't given the money they year for, they're in a position where they can afford to hold on to their showlists and roll them over to the next. No cash cattle trade developed throughout the day, and asking prices and bids remain elusive at this point. It's not likely that any trade will develop ahead of Thursday. Tuesday's slaughter is estimated at 123,000 head -- 1,000 head more than a week ago and 1,000 head less than a year ago. Monday's slaughter is estimated at 2,000 head. June live cattle closed $0.85 higher at $184.55, August live cattle closed $0.70 higher at $181.82 and October live cattle closed $0.45 higher at $184.40.
Last week Southern live cattle traded for mostly $187, which is $1.00 higher than last week's weighted average; Northern dressed cattle traded for mostly $302 to $305, which is steady to $5.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 67,936 head. Of that 77% (52,013 head) were committed to the nearby delivery while the remaining 23% (15,923 head) were committed to the deferred delivery.
Boxed beef prices closed higher: choice up $1.67 ($312.12) and select up $1.71 ($303.43) with a movement of 117 loads (71.34 loads of choice, 21.24 loads of select, 8.25 loads of trim and 16.00 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. With boxed beef demand still thriving, it's likely that cash cattle prices will trade at least steady, if not some higher later this week.
FEEDER CATTLE:
The feeder cattle complex charged onward all through Tuesday's market as the support wasn't hard to come by in today's trading arena. Between corn prices closing lower, Friday's Cattle on Feed report being bullish and continuing to show limited supplies in the months ahead, and feeder cattle demand in the countryside remaining incredibly strong -- it was nearly effortless for traders to run the complex $3.00 to $4.00 higher ahead of the day's end. August feeders closed $4.37 higher at $264.60, September feeders closed $3.95 higher at $265.70 and October feeders closed $3.70 higher at $266.25. The CME feeder cattle index 5/27/2024: not available at this time.
LEAN HOGS:
The lean hog complex saw afternoon pork cutout values and cash hog prices close higher, but still, the market's nearby contracts remain skeptical of advancing whatsoever as nearby demand continues to be a finicky market. If traders saw demand increase over a series of consecutive days, or weeks, then it's likely that they'd have a different attitude, but one day of higher prices isn't enough to change their minds. June lean hogs closed $0.47 lower at $93.80, July lean hogs closed $0.70 lower at $96.52 and August lean hogs closed $0.80 lower at $96.10. Pork cutouts totaled 294.00 loads with 248.71 loads of pork cuts and 45.29 loads of trim. Pork cutout values: up $4.26, $103.40. Tuesday's slaughter is estimated at 485,000 head -- 14,000 head more than a week ago and 8,000 head more than a year ago. Monday's slaughter is estimated at 2,000 head. The CME lean hog index 5/23/2024: down $0.14, $91.63.
WEDNESDAY'S HOG CALL: Higher. Given that packers showed more aggression in buying early in the week than what they normally do, it's likely that they're somewhat short bought and will need to buy more hogs throughout the week.
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