GENERAL COMMENTS:
It was a lackadaisical technical day for the livestock contracts as all three markets closed lower. No cash cattle trade developed throughout the day, but early asking prices could be noted on Wednesday. The monthly WASDE report will also be shared Wednesday morning which will hopefully give pork producers a better understanding of what demand will look like in the second half of the year. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.08 with a weighted average price of $87.50 on 6,595 head. July corn is down 2 1/4 cents per bushel and July soybean meal is down $8.70. The Dow Jones Industrial Average is down 148.44 points.
LIVE CATTLE:
After rallying aggressively through Monday's market, the live cattle complex took a calm, cool, collected and slightly lower approach to Tuesday's market as traders are waiting to see how this week's cash cattle market shakes out. Feedlot managers (especially in the North) weren't willing to let their cattle go without some stern negotiations and it's expected that cattle won't sell for anything less than steady again this week. No bids or asking prices have been posted yet, and it's likely that trade will be delayed until late in the week, but with packers only getting 64,000 head bought last week -- it's likely that they'll have to be more aggressive in this week's cash market. June live cattle closed $0.17 lower at $183.75, August live cattle closed $1.05 lower at $178.92 and October live cattle closed $0.45 lower at $181.72.
Tuesday's slaughter is estimated at 123,000 head -- steady with a week ago and 3,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $0.79 ($318.21) and select down $0.42 ($300.62) with a movement of 144 loads (82.12 loads of choice, 33.64 loads of select, 11.25 loads of trim and 17.40 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Higher. Given that packers didn't get very many cattle bought last week, it's likely that they'll have to be more aggressive in this week's market even if it means paying more cash for those cattle.
FEEDER CATTLE:
The feeder cattle complex traded lower all throughout Tuesday's market as traders took a backburner approach to today's trade after rallying the complex mostly $3.00 higher through Monday's trade. Thankfully the board's slightly weaker tone didn't affect sales in the countryside, and by Wednesday official sale averages from Superior's Corn Belt Classic should be posted and it will be especially interesting to see how the sale compared to last year's market. In the lots that I watched sell, lofty prices thanks to excellent buyer demand was the norm. August feeders closed $1.00 lower at $257.65, September feeders closed $1.05 lower at $258.67 and October feeders closed $0.97 lower at $259.22. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers over 850 pounds traded $1.00 to $6.00 higher while feeder steers under 850 pounds sold $2.00 to $7.00 lower. Steer calves traded $5.00 to $10.00 higher, and feeder heifers sold steady to $4.00 higher. Heifer calves traded mostly $4.00 to $9.00 lower. Feeder cattle supply over 600 pounds was 78%. The CME feeder cattle index 6/10/2024: up $0.51, $253.39.
LEAN HOGS:
Well sure enough, the lean hog complex did seek pork cutout values close higher (mostly influenced by the belly's $16.08 jump) but even so, the hog complex still closed lower. With demand being too uncertain, traders are continuing to be extremely cautious in how they handle the lean hog contracts and they are reluctant to overly support the market by any measure. Wednesday morning the monthly WASDE report will be released which may help answer some questions as to what pork demand will be in the second half of 2024. June lean hogs closed $0.30 lower at $91.95, July lean hogs closed $0.62 lower at $92.27 and August lean hogs closed $1.12 lower at $89.10. Pork cutouts totaled 327.44 loads with 288.05 loads of pork cuts and 39.39 loads of trim. Pork cutout values: up $3.24, $103.66. Tuesday's slaughter is estimated at 482,000 head -- 1,000 head more than a week ago and 17,000 head more than a year ago. The CME lean hog index 6/7/2024: down $0.23, $91.52.
WEDNESDAY'S HOG CALL: Steady. Packers were short bought on hogs going into this week, and after today's purchase, it's tough telling if they've secured enough inventory or if they'll need to continue to buy hogs later into the week.
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