GENERAL COMMENTS:
Early in the day, the cattle contracts traded higher, but by Tuesday's end, the entire livestock complex was pressured into closing lower as support was tough to come by for the markets. Still no cash cattle trade has developed, and trade will likely be delayed until Thursday or Friday. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.57 with a weighted average price of $88.78 on 5,689 head. July corn is down 1 cent per bushel and July soybean meal is down $4.40. The Dow Jones Industrial Average is up 116.41 points.
LIVE CATTLE:
The live cattle complex was trading higher ahead of the day's noon hour, but without much developing fundamental yet in the week, traders were short of the support that they needed to comfortably trade the market higher. June live cattle closed $0.15 higher at $182.17, August live cattle closed $0.42 lower at $178.45 and October live cattle closed $0.10 lower at $180.80. There still hasn't been any cash cattle trade reported and it's likely that the week's trade will be delayed until late in the week as packers and feedlot managers again will go toe to toe as packers want to keep prices from trading any higher, and feedlot managers know that now is the time to advance the market ahead of the dog-days-of-summer.
Tuesday's slaughter is estimated at 123,000 head -- steady with a week ago and 2,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.28 ($316.88) and select up $0.77 ($304.47) with a movement of 143 loads (105.74 loads of choice, 16.54 loads of select, 6.73 loads of trim and 14.27 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to $1.00 higher. Even though packers were able to keep cash prices from trading higher last week, if they're going to supply retailers with enough product to market, they're going to need to continue to be active in the cash market.
FEEDER CATTLE:
The feeder cattle complex tried to trade higher through the day's end, but support wasn't alive and active enough through the day's end to sustain the market's higher aim. August feeders closed $0.17 lower at $256.02, September feeders closed $0.27 lower at $257.60 and October feeders closed $0.30 lower at $258.55. Thankfully the spot August contract was able to close above the market's 40-day moving average which remains a key threshold to continue to monitor. At Joplin Regional Stockyards in Carthage, Missouri compared to their last sale two weeks ago, steers under 600 pounds sold steady to $5.00 lower with heavier weights selling $3.00 to $7.00 higher. Heifers under 600 pounds sold $2.00 to $7.00 lower. Heavier-weighted heifers traded $2.00 to $8.00 higher. Feeder cattle supply over 600 pounds was 60%. The CME feeder cattle index 6/3/2024: not available at this time.
LEAN HOGS:
It was a brutal Tuesday market for the lean hog complex. Not only did pork cutout values and cash hog prices close lower, but the futures complex also broke through support levels indicating that the market could be in for more technical pressure in the near term. June lean hogs closed $0.95 lower at $92.70, July lean hogs closed $2.35 lower at $93.92 and August lean hogs closed $2.07 lower at $93.55. The belly's $10.31 decline was the cutout value's biggest reason for closing lower, which continues to be a volatile cut. Pork cutouts totaled 323.98 loads with 291.49 loads of pork cuts and 32.50 loads of trim. Pork cutout values: down $0.67, $100.76.
Tuesday's slaughter is estimated at 481,000 head -- 6,000 head more than a week ago and 12,000 head more than a year ago. The CME lean hog index 5/31/2024: down $0.24, $91.73.
WEDNESDAY'S HOG CALL: Lower. With the futures market closing sharply lower and pork demand continuing to be volatile, it's unlikely that packers will advance the cash market at this time.
No comments:
Post a Comment