GENERAL COMMENTS:
The cattle contracts were able to round out Monday's trade mostly higher, but with a lack of demand, the lean hog complex ended the day lower. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.60 with a weighted average price of $86.64 on 3,393 head. July corn is down 1 1/2 cents per bushel and July soybean meal is up $11.00. The Dow Jones Industrial Average is up 260.88 points.
LIVE CATTLE:
The live cattle complex rounded out the day mostly higher as traders continue to be well supported and thoroughly impressed with the market's strong fundamentals. So long as beef demand remains strong and the cash cattle market holds at least steady, the market should be able to maintain these levels. August live cattle closed $1.67 higher at $184.82, October live cattle closed $0.17 higher at $183.80 and December live cattle closed $0.27 lower at $185.80. It wouldn't be surprising to see the complex chop sideways until Thursday or Friday when traders will have a better understanding of what the cash cattle market is going to do this week following last week's incredible gain. New showlists appear to be mixed, somewhat higher in Kansas, but lower in Nebraska/Colorado and Texas. Monday's slaughter is estimated at 115,000 head – 1,000 head less than a week ago and 9,000 head less than a year ago.
Last week Northern dressed cattle sold for $305 to $312, but mostly at $310 to $312, which is $4.00 to $6.00 higher than last week's weighted average. But there were prices reported up to $315 which is $9.00 higher than last week's weighted average. Southern live cattle traded from $189 to $190 which is $3.00 to $5.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 73,368 head. Of which 79% (57,696 head) were committed to the nearby delivery, while the remaining 21% (15,672 head) were committed to the deferred delivery.
Boxed beef prices closed higher: choice up $0.25 ($322.64) and select up $1.96 ($305.07) with a movement of 109 loads (54.13 loads of choice, 29.11 loads of select, 4.66 loads of trim and 20.82 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat higher. Given that boxed beef prices continue to see tremendous demand, there's a chance that cash prices trade higher again this week, if not hold at least steady.
FEEDER CATTLE:
The feeder cattle complex flopped back and forth throughout Monday's trade as traders were weighing the pros and cons of the market, trying to determine if Friday's bearish Cattle on Feed report held more clout or if the exciting nature of the fed cattle market amid tremendous cash demand for feeder cattle did. But thankfully by the day's end the market closed higher as traders elected to find confidence in the market's strong fundamentals. August feeders closed $0.52 higher at $258.90, September feeders closed $0.22 higher at $260.12 and October feeders closed $0.05 higher at $260.67. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week feeder steer calves sold $7.00 to $14.00 lower, but yearling steers over 725 pounds sold steady to $6.00 higher. Feeder heifer calves sold $2.00 to $4.00 lower but yearling heifers over 700 pounds sold steady to $10.00 higher. Feeder cattle supply over 600 pounds was 81%. The CME feeder cattle index 6/21/2024: not available at this time.
LEAN HOGS:
With demand continuing to be an issue, the lean hog complex sank lower yet again and broke through the market's current support plane. July lean hogs closed $2.10 lower at $89.95, August lean hogs closed $2.60 lower at $86.72 and October lean hogs closed $2.25 lower at $74.07. The afternoon carcass price fell sharply as the butt fell $6.19 and the loin fell $5.03. The market is in desperate need of better pork demand, and until support comes to fruition, the market's weaker tone will likely remain. Pork cutouts totaled 304.98 loads with 260.96 loads of pork cuts and 44.02 loads of trim. Pork cutout values: down $1.20, $97.83. Monday's slaughter is estimated at 473,000 head – 14,000 head more than a week ago and 24,000 head more than a year ago. The CME lean hog index 6/20/2024: down $0.23, $90.32.
TUESDAY'S HOG CALL: Steady. Packers were slightly more aggressive in Monday's market as faster chain speeds make it to where they need more hogs.
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