GENERAL COMMENTS:
The week's excitement may have been slowly coming, but Friday was a powerful day for the cattle complex as traders wasted no time in trading both the live cattle and feeder cattle markets higher thanks to the support of the cash cattle market. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.74 with a weighted average price of $87.61 on 2,619 head. From Friday-to-Friday livestock futures scored the following changes: June live cattle up $4.65, August live cattle up $6.00; August feeder cattle up $7.05, September feeder cattle up $6.85; June lean hogs down $1.35, July lean hogs up $0.15; July corn up $0.01, September corn up $0.02.
LIVE CATTLE:
Traders may have been merely kicking rocks all week waiting for the cash cattle market to trade, but once trade finally broke loose, traders wasted no time in celebrating and running the contracts sharply higher. June live cattle closed $2.00 higher at $186.82, August live cattle closed $3.67 higher at $183.17 and October live cattle closed $3.15 higher at $184.85. This afternoon's close in the spot August contract is the highest price point the market has traded at since late March and breaks the market well out of its sideways trading range. Packers came into this week short bought and ended up paying more money in the cash market because of it. Throughout the week Southern live cattle traded at $186, which is $1.00 higher than last week's weighted average, and Northern dressed cattle traded at $305 to $306 which is $4.00 to $5.00 higher than last week's weighted average and depending on where the week's averages land officially -- those prices could be new market highs for the Northern plains.
Friday's slaughter is estimated at 119,000 head -- 1,000 head more than a week ago and 2,000 head more than a year ago. Saturday's slaughter is projected to be around 7,000 head. The week's total slaughter is estimated at 615,000 head -- 1,000 head more than a week ago and 21,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.58 ($319.89) and select up $4.56 ($303.81) with a movement of 101 loads (64.70 loads of choice, 15.72 loads of select, 6.19 loads of trim and 14.29 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Depending on how many cattle packers got bought this week, prices stand a chance at trading steady if boxed beef demand remains strong.
FEEDER CATTLE:
It was a rallying day for the feeder cattle market as traders were elated to see the cash cattle market make such strong advancements this week. The market was well supported by feeder cattle buyer interest all throughout the week, but traders didn't seem willing to support the futures contracts ahead of seeing what the fed cash cattle market did. August feeders closed $4.50 higher at $261.97, September feeders closed $4.40 higher at $262.70 and October feeders closed $4.37 higher at $263.10. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week and throughout the entire state, feeder steers weighing over 800 pounds sold $4.00 to $8.00 higher but feeder steers under 800 pounds traded $2.00 to $5.00 lower. Steer calves traded $3.00 to $4.00 higher. Feeder heifers sold $3.00 to $5.00 higher and heifer calves sold steady to $4.00 lower. Slaughter cows sold $1.00 lower and slaughter bulls sold $1.00 higher. The CME feeder cattle index 6/13/2024: up $0.27, $256.13.
LEAN HOGS:
The lean hog complex found some support ahead of Friday's end as most of the contracts were able to close mildly higher. July lean hogs closed $0.87 higher at $93.65, August lean hogs closed $1.85 higher at $90.45 and October lean hogs closed $1.02 higher at $76.75. The additional support of both cash prices and pork cutout values rounding out the day higher helped traders find comfort in advancing the contracts ahead of the weekend. The belly was the biggest contributing factor as to why the carcass price closed higher as it alone jumped $16.58, but the butt closed $6.76 higher, and the loin closed $4.45 higher too -- all of which helped immensely. If pork demand remains strong again next week, the market stands a chance at trending slightly higher. Pork cutouts totaled 346.01 loads with 296.76 loads of pork cuts and 49.25 loads of trim. Pork cutout values: up $4.33, $101.35. The CME lean hog index 6/12/2024: up $0.20, $91.58.
Friday's slaughter is estimated at 456,000 head -- 10,000 head less than a week ago and 2,000 head more than a year ago. Saturday's slaughter is projected to be around 49,000 head.
MONDAY'S HOG CALL: Steady. Given that Friday's cash hog market still saw some packer interest, packers could be slightly short bought and need to buy more hogs again on Monday.
No comments:
Post a Comment