GENERAL COMMENTS:
Mostly it was a quiet day for the livestock complex with none of the markets seeing much for trader attention. It was disappointing to see pork cutout values close lower, but again the boxed beef prices closed higher which could help cash prices later this week. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.57 with a weighted average price of $89.21 on 9,680 head. July corn is down 8 cents per bushel and July soybean meal is down $7.50. The Dow Jones Industrial Average is down 299.05 points.
Tuesday's Cold Storage Report shared that total red meat supplies in freezers were down 3% from the previous month and down 5% from the last year. Total pounds of beef in freezers were down 3% from last month and down slightly from a year ago. Frozen pork supplies were down 3% from last month and down 9% from last year. Stocks of pork bellies were down 7% from last month and down 14% from last year.
LIVE CATTLE:
Tuesday didn't amount to much for the live cattle complex as the market saw mixed interest from traders as more than anything they're waiting to see what this week's cash cattle market does before they support the contracts hastily. August live cattle closed $0.40 lower at $184.42, October live cattle closed $0.55 higher at $184.35 and December live cattle closed $0.35 higher at $186.15. Thankfully boxed beef prices are continuing to see strong demand so it's likely that feedlots will again aim to advance the cash cattle market while they have the opportunity to do so. Asking prices are still not established, and trade will likely be delayed until Thursday at the earliest.
Tuesday's slaughter is estimated at 121,000 head -- 2,000 head less than a week ago and 7,000 head less than a year ago.
Boxed beef prices are higher: choice up $0.75 ($323.39) and select up $0.19 ($305.26) with a movement of 121 loads (72.15 loads of choice, 29.06 loads of select, 8.88 loads of trim and 10.53 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady/somewhat higher. When the market is carving out new weekly highs, it's tough to determine what prices could be discovered this week as feedlots continue to push into uncharted waters.
FEEDER CATTLE:
Normally one would suspect the feeder cattle complex to close modestly higher on a day where corn prices closed $0.07 to $0.09 lower, but traders remain passive, slow to make any movement in the futures complex as they wait to see what the cash cattle market is going to do this week. August feeders closed $0.15 higher at $259.05, September feeders closed $0.05 lower at $260.07 and October feeders closed $0.07 lower at $260.60. From a fundamental sense, the market remains incredibly strong as buyer demand remains incredible and given the limited supply of cattle in the countryside, prices are expected to remain well supported through the year's end. The CME feeder cattle index 6/24/2024: down $0.44, $257.90.
LEAN HOGS:
Tuesday ended up being a swing and a miss for the lean hog complex as it appeared as though early in the day that trades were going to support the complex, but as the afternoon drew on, trader's confidence dwindled, and the contracts closed mostly lower. July lean hogs closed $0.95 lower at $89.00, August lean hogs closed $0.02 higher at $86.75 and October lean hogs closed $0.47 lower at $73.60. Traders will likely look at the afternoon pork cutout values and deem their decision to let the contracts drift lower as a good one given that the carcass price fell $2.52 this afternoon. The belly was the leading cause of today's carcass price's weakness as it alone fell $9.21. Pork cutouts totaled 288.98 loads with 233.78 loads of pork cuts and 55.20 loads of trim. Pork cutout values: down $2.52, $95.31. Tuesday's slaughter is estimated at 481,000 head -- 1,000 head less than a week ago and 15,000 head more than a year ago. The CME lean hog index 6/21/2024: down $0.42, $89.90.
WEDNESDAY'S HOG CALL: Steady. Even though this afternoon's carcass price closed lower, packers could mildly/modestly support tomorrow's cash market again as today's aggressive purchase likely indicates that they're short bought.
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