GENERAL COMMENTS:
The livestock complex closed mixed as the lean hog market found support late in the week, but the cattle contracts were leery of what the cash cattle market was going to do ahead of the day's end and closed slightly lower. Thankfully feedlot managers were able to get cattle sold steady to $1.00 higher compared to last week's weighted averages. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.14 with a weighted average price of $89.17 on 3,283 head. September corn is down 15 cents per bushel and December soybean meal is down $3.00. The Dow Jones Industrial Average is down 63.39 points.
From Friday-to-Friday livestock futures scored the following changes: June live cattle up $5.90, August live cattle up $2.28; August feeder cattle up $0.93, September feeder cattle down $0.25; July lean hogs down $2.47, August lean hogs up $0.17; July corn down $0.38, September corn down $0.33.
LIVE CATTLE:
The cash cattle market may not have traded as high as some thought it was going to, but steady to $1.00 gains on top of last week's aggressive push is still a win for feedlots. Trade was slow to develop as feedlots wanted to make sure that they were working the market to its fullest potential before they allowed any of their pens to be sold. Some light trade has been reported at $312 which is $1.00 higher than last week's weighted average, and some Southern live cattle have traded at $190 which is roughly steady with last week's weighted average. There's still a chance given that only a few sales have been reported that the market could see prices improve for those who are still waiting to sell, which we will have to wait until Monday's confirmed report to see where the week's weighted averages land. But for cattle left on showlists, Southern feedlots are asking $192 to $195, and Northern feedlots are asking $315 plus.
Traders grew tired of waiting for the cash cattle market to trade and let prices drift slightly lower ahead of the day's end. August live cattle closed $1.02 lower at $185.42, October live cattle closed $0.87 lower at $184.87 and December live cattle closed $1.10 lower at $185.90.
Friday's slaughter is estimated at 119,000 head -- 1,000 head less than a week ago and 5,000 head less than a year ago. Saturday's slaughter is projected to be around 16,000 head. The week's total slaughter is estimated at 609,000 head -- 11,000 head less than a week ago and 41,000 head less than a year ago.
Boxed beef prices closed higher: choice up $2.99 ($326.32) and select up $1.80 ($304.50) with a movement of 94 loads (59.98 loads of choice, 13.26 loads of select, 9.33 loads of trim and 11.03 loads of ground beef).
MONDAY'S CATTLE CALL: Steady. Given that next week's slaughter will be reduced because of the holiday, it's likely that cash prices hold steady.
FEEDER CATTLE:
The cash cattle market waited to trade until after Friday's close which pressured traders ahead of the day's end and ultimately led to the feeder cattle complex's weaker end for the week. August feeders closed $1.35 lower at $259.30, September feeders closed $1.75 lower at $259.65 and October feeders closed $1.80 lower at $260.00. Again, the feeder cattle market is currently trading in a mixed scenario as the futures complex dances back and forth trying to discern if a higher trend is appropriate, all while the market's fundamentals continues to grind higher without skipping a beat and without being worried about what the futures market is doing. The utter fact that earlier this week the CME feeder cattle index closed above $259 is proof of how strong the cash market is. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week feeder steers sold steady to $3.00 higher, but feeder heifers traded steady to $3.00 lower. Steer and heifer calves were $4.00 to $8.00 lower. The sale report noted that demand for bawling calves has softened as temperatures continue to rise which inflicts more stress on the cattle. Slaughter cows and bulls traded mostly steady. Feeder cattle supply over 600 pounds was 72%. The CME feeder cattle index 6/27/2024: down $0.44, $258.60.
LEAN HOGS:
The lean hog complex was able to keep its momentum through the day's end as the market has finally found some technical support and it was also helpful that pork cutout values closed higher too. July lean hogs closed $0.12 higher at $89.57, August lean hogs closed $1.40 higher at $89.50 and October lean hogs closed $1.00 higher at $75.72. It was also promising to see that the carcass price's higher close stemmed mainly from the rib's $6.22 gain and the ham's $7.54 jump. Pork cutouts totaled 230.98 loads with 188.22 loads of pork cuts and 42.76 loads of trim. Pork cutout values: up $2.99, $97.89. Friday's slaughter is estimated at 472,000 head -- 2,000 head less than a week ago and 27,000 head more than a year ago. Saturday's slaughter is estimated 63,000 head. The CME lean hog index 6/26/2024: down $0.17, $89.75.
MONDAY'S HOG CALL: Steady to somewhat higher. Given that market will be closed on Thursday for Independence Day, packers will likely need to be more aggressive earlier in the week in the cash market.
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