GENERAL COMMENTS:
It was a mixed day for the livestock complex as the cattle contracts saw ample trader support, but the lean hog market continues to plunder lower as pork demand is lacking. No cash cattle trade has developed yet but packer interest could improve on Thursday. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.37 with a weighted average price of $87.82 on 3,665 head. July corn is up 3 1/4 cents per bushel and July soybean meal is up $5.90. The Dow Jones Industrial Average is down 231.53 points.
LIVE CATTLE:
It was another powerful day for the live cattle complex as the futures complex closed higher yet again thanks to the spillover support that came from the feeder cattle market's strong performance. The old saying of, "feeders are the leaders," was true today as the market saw boxed beef prices close slightly lower. June live cattle closed $1.20 higher at $184.17, August live cattle closed $1.25 higher at $181.67 and October live cattle closed $1.50 higher at $184.65. No cash cattle trade developed throughout the day as packers and feedlots will again go toe-to-toe this week. Early asking prices in the South are noted at $188 to $190, but remain unestablished in the North. Most of this week's trade will likely be delayed again until Friday.
Wednesday's slaughter is estimated at 122,000 head -- 2,000 head less than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed lower: choice down $0.85 ($312.17) and select closed $1.26 lower ($299.61) with a movement of 133 loads (85.92 loads of choice, 21.97 loads of select, 7.19 loads of trim and 17.73 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to somewhat higher. Feedlots continue to hold the market's leverage, and with that being the case, prices will likely trade steady if not a little higher again this week.
FEEDER CATTLE:
The feeder cattle complex held back nothing through Wednesday's trade as the market closed anywhere from $1.00 to $3.00 higher as countryside support and strong live cattle fundamentals continue to propel the complex higher. Nearby corn prices closed $0.01 to $0.03 higher, but the feeder cattle complex didn't seem to care as traders were interested in advancing the market -- so much so that the spot August contract closed above its 100-day moving average ($260.25). August feeders closed $3.07 higher at $262.90, September feeders closed $2.62 higher at $263.75 and October feeders closed $2.50 higher at $264.20. At Ozarks Regional Stockyards in West Plains, Missouri, compared to last week feeder steers sold $4.00 to $9.00 higher and feeder heifers traded $5.00 to $10.00 higher with instances up to $15.00 higher. The market reporter remarked that "October in May is the best way to describe today's offering. The sounds of bawling calves could be heard across the parking lot as producers have elected to market to take their calves to town with these high prices." The CME feeder cattle index 5/21/2024: up $0.69, $248.44.
LEAN HOGS:
Another day, another lower close and continuing to lack substantial consumer demand seems to summarize the lean hog complex well. The lean hog complex endured yet another dreary day as the market saw little support from traders as consumer demand continues to be an issue for the market. June lean hogs closed $1.00 lower at $95.40, July lean hogs closed $1.20 lower at $98.12 and August lean hogs closed $1.02 lower at $97.55. There's a chance that Thursday's export report could be beneficial to the complex, but in recent weeks demand hasn't been strong from international buyers either. Pork cutouts totaled 258.10 loads with 224.78 loads of pork cuts and 33.32 loads of trim. Pork cutout values: down $0.62, $100.07. Wednesday's slaughter is estimated at 484,000 head -- 4,000 head more than a week ago and 15,000 head more than a year ago. The CME lean hog index 5/20/2024: down $0.21, $92.01.
THURSDAY'S HOG CALL: Lower. With pork demand remaining an issue, it's likely that packers only lightly buy in this week's cash market.
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