GENERAL COMMENTS:
It was another day of lower closes for the livestock complex as all three of the markets rounded out Wednesday with a lower end. Still no cash cattle trade has developed, but packer interest is expected to increase by Thursday. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.06 with a weighted average price of $88.72 on 5,875 head. July corn is down 3 1/4 cents per bushel and July soybean meal is up $4.40. The Dow Jones Industrial Average is up 96.04 points.
LIVE CATTLE:
It was another dismal day for the live cattle complex as traders scanned the market looking for support, but without any cash cattle trade developing and boxed beef prices closing lower, the market was left with little other option but to close lower. June live cattle closed $0.40 lower at $181.77, August live cattle closed $0.57 lower at $177.87 and October live cattle closed $0.50 lower at $180.30. It is positive to see that the market continues to trade above its 100-day moving average, but if support doesn't substantiate by Thursday, traders could be pressured into breaking through the market's moving average. No cash cattle trade developed throughout the day but asking prices in the North have been noted at $305 to $306 but remain unestablished still in the South. Packer interest should improve on Thursday.
Wednesday's slaughter is estimated at 124,000 head -- 1,000 head less than a week ago and steady with a year ago.
Boxed beef prices closed lower: choice down $2.09 ($314.79) and select down $3.57 ($300.90) with a movement of 115 loads (66.10 loads of choice, 23.97 loads of select, 7.27 loads of trim and 17.55 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. The market may be pressured with some doggish tones this week, but the fact remains that if packers want to have enough meat to market to retailers, they're going to need to stay engaged in the cash market.
FEEDER CATTLE:
The feeder cattle market continued to sink lower through Wednesday's end as even though feeder cattle demand in the countryside remains strong – the rest of the market's factors were lacking. No cash cattle trade has developed yet, and with the live cattle contracts closing lower, feeders opted to jump on the market's lower trending bandwagon and closed fully lower too. August feeders closed $1.20 lower at $254.82, September feeders closed $1.40 lower at $256.20 and October feeders closed $1.40 lower at $257.15. The CME feeder cattle index 6/4/2024: down $0.03, $250.86.
LEAN HOGS:
The lean hog complex continued to drift lower and lower until Wednesday's market came to an end. Yes, the cash market saw a little more interest as 5,875 head traded, but with pork cutout values lower, traders didn't find nearly enough support in the day's market to change the market's direction. June lean hogs closed $0.60 lower at $92.10, July lean hogs closed $1.72 lower at $92.20 and August lean hogs closed $1.92 lower at $91.62. The market could be better supported on Thursday if export sales are fruitful but given that last week's sale report was substantially stronger than the market's current norm, it's tough telling what demand will be on tomorrow's exports. Pork cutouts totaled 273.76 loads with 225.32 loads of pork cuts and 48.44 loads of trim. Pork cutout values: down $0.45, $100.31. Wednesday's slaughter is estimated at 482,000 head -- 1,000 head less than a week ago and 23,000 head more than a year ago. The CME lean hog index 6/3/2024: up $0.20, $91.93.
THURSDAY'S HOG CALL: Lower. Given that packers bought over 5,000 head in today's cash market, it's likely means that they've fulfilled most of their needs for the week and that Thursday's market will see less interest.
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