GENERAL COMMENTS:
All in all, it was a quiet day throughout the livestock complex as the live cattle complex close mixed, feeders rallied as corn prices dropped lower and the hog complex lacked adequate support. Hog prices closed higher on the Daily Direct Afternoon Hog report, up $0.08 with a weighted average price of $83.12 on 1,940 head. December corn is down 10 1/2 cents per bushel and December soybean meal is down $5.80. The Dow Jones Industrial Average is up 210.82 points.
LIVE CATTLE:
The live cattle complex saw mixed interest from traders as part of the contracts closed higher, while the other part closed mildly lower. More than anything, traders seem to be somewhat hesitant to support the complex ahead of knowing what Friday's Cattle on Feed report is going to yield, but they're also interested in seeing what this week's cash market does. There's no denying that the seasonal, summertime pressure has worked its way into the market and has obviously affected the live cattle market as both boxed beef prices and last week's cash market traded lower -- but it wouldn't be surprising to see Northern feedlots trade to keep the market at least steady while the South will likely trade lower. No bids or asking prices have been reported yet, but seeing delayed trade in the North isn't out of the question. August live cattle closed $0.25 lower at $182.12, October live cattle closed $0.27 lower at $183.80 and December live cattle closed $0.17 higher at $185.65.
Last week, Southern live cattle traded at mostly $188 which is $4.00 lower than the previous week's weighted average while Northern dressed cattle traded at $312 which is $2.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 82,802 head. Of that, 75% (61,798 head) were committed to the nearby delivery, while the remaining 25% (21,004 head) were committed to the deferred delivery.
Boxed beef prices closed mixed: choice down $0.57 ($312.49) and select up $2.51 ($304.82) with a movement of 89 loads (46.90 loads of choice, 12.16 loads of select, 15.13 loads of trim and 14.85 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat lower. It's likely that the regions will trade mixed this week as the Southern plains could see prices fall but the North may be able to keep prices steady if they work diligently and don't sell out early.
FEEDER CATTLE:
Even though the live cattle complex closed mixed, with most of its contracts teetering on either side of steady, the feeder cattle complex was able to power through the day and close higher. Part of feeder's ability to close higher stemmed from the fact that the nearby corn contracts closed $0.10 to $0.11 lower, which even though corn prices have been affordable this year, feeder cattle buyers continue to watch corn prices closely as any change in input cost for feeders gravely affects their bottom-line. August feeders closed $0.12 higher at $258.77, September feeders closed $0.80 higher at $258.90 and October feeders closed $0.92 higher at $258.47. At Joplin Regional Stockyards in Carthage, Missouri compared to last week feeder steers sold $2.00 to $4.00 lower and feeder heifers sold steady to $3.00 lower. Supply was called moderate with good demand. Feeder cattle over 600 pounds was 77%. The CME feeder cattle index 7/12/2024: up $0.84, $261.88.
LEAN HOGS:
The lean hog complex didn't receive the support it had hoped for throughout the day as all its market closed lower. The cash complex didn't see a plethora of hogs bought from packers like it did last week, and the pork cutout value also closed mildly lower too (mainly led lower by the $6.60 drop in the ham). All in all, the hog complex lacked the support it needed to do anything through Monday's trade. August lean hogs closed $0.02 lower at $88.42, October lean hogs closed $0.37 lower at $69.77 and December lean hogs closed steady at $62.37. Pork cutouts totaled 261.11 loads with 221.72 loads of pork cuts and 39.39 loads of trim. Pork cutout values: down $0.55, $98.29. The CME lean hog index 7/11/2024: down $0.27, $88.38.
TUESDAY'S HOG CALL: Steady. Tuesday's market may see a bit more interest from packers as they didn't buy many hogs in Monday's market.
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