GENERAL COMMENTS:
The livestock complex closed mixed as on one hand traders were tiresome waiting for the cash cattle market to trade, and on the other hand they were anxious about seeing what the afternoon's Quarterly Hogs and Pigs report was going to do. Still no significant cash cattle trade has developed. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.39 with a weighted average price of $89.03 on 1,828 head. July corn is down 6 1/4 cents per bushel and December soybean meal is up $0.10. The Dow Jones Industrial Average is up 36.26 points.
Thursday's export report shared that beef net sales of 16,700 mt for 2024 were up 13% from the previous week and 17% from the prior four-week average. The three largest buyers were Japan (4,000 mt), China (4,000 mt) and South Korea (3,500 mt). Pork net sales of 39,200 mt for 2024 were up 83% from the previous week and 25% from the prior 4-week average. The three largest buyers were Mexico (20,200 mt), Japan (5,900 mt) and Canada (4,200 mt).
LIVE CATTLE:
The live cattle complex was trading higher early in the day, but as the afternoon drug on, traders grew less and less patient as they continue to wait for the cash cattle market to trade. Feedlots are determined to see again cash prices reported higher this week so it comes as no surprise that the market is waiting to trade until Friday as feedlots want to pressure packers into paying more. Asking prices are noted in the South at $192 to $194, and at $315 plus in the North. August live cattle closed $0.30 lower at $186.45, October live cattle closed $0.37 lower at $185.75 and December live cattle closed $0.62 lower at $187.00.
Thursday's slaughter is estimated at 121,000 head -- steady with a week ago and 4,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $0.48 ($323.33) and select down $0.16 ($302.70) with a movement of 117 loads (64.74 loads of choice, 23.85 loads of select, 10.78 loads of trim and 17.26 loads of ground beef).
FRIDAY'S CATTLE CALL: Higher. At this stage in the game, feedlots possess the market's leverage and the only card in which packers can really play is to cut processing speeds, but with beef prices as high as they are and given that processing speeds have already been reduced, packers don't have much say in the market's current play.
FEEDER CATTLE:
Following Wednesday's impressive technical jump, the feeder cattle complex wasn't as powerful throughout Thursday's trade as it was the day before. It's not likely that traders regret their upward push on Wednesday, but more so that they're simply waiting for the cash cattle market to trade and to receive that reassurance that the market's fundamentals are indeed in support of higher prices again this upcoming week. August feeders closed $1.12 lower at $260.65, September feeders closed $1.07 lower at $261.40 and October feeders closed $1.10 lower at $261.80. At Clovis Livestock Auction in Clovis, New Mexico, compared to last week steer and heifer stocker calves were steady to $5.00 higher. Feeder steer and heifers were mostly steady. Slaughter cows sold steady to $2.00 higher and slaughter bulls traded $6.00 to $9.00 higher. Feeder cattle supply over 600 pounds was 27%. The CME feeder cattle index 6/26/2024: up $0.73, $259.04.
LEAN HOGS:
The lean hog complex didn't seem overly thankful of the export report's fruitful showing, but instead sat quietly waiting for the afternoon's Quarterly Hogs and Pigs report to come out which was deemed neutral to somewhat bearish given that the marketing inventory was up 2%. Access DTN's Hogs and Pigs Report comments here:
August lean hogs closed $0.30 lower at $186.45, October lean hogs closed $0.37 lower at $185.75 and December lean hogs closed $0.62 lower at $187.00. With both pork cutout values and the Quarterly report somewhat bearish, it's likely that Friday's trade will be lower. Pork cutouts totaled 239.58 loads with 197.44 loads with 42.13 loads of trim. Pork cutout values: down $0.62, $94.90. Thursday's slaughter is estimated at 476,000 head -- 1,000 head more than a week ago and 22,000 head more than a year ago. The CME lean hog index 6/25/2024: up $0.07, $89.92.
FRIDAY'S HOG CALL: Lower. Given that it will be Friday and that next week has a major holiday which will cut production, prices will likely be lower.
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