GENERAL COMMENTS:
All in all, it was a good day for the livestock complex as all of the markets closed higher and the lean hog complex saw ample fundamental support, too. Still no cash cattle trade has developed, but packer interest could improve Wednesday. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.93 with a weighted average price of $85.05 on 9,564 head. December corn is up 4 1/2 cents per bushel and December soybean meal is up $1.80. The Dow Jones Industrial Average is up 742.76 points.
LIVE CATTLE:
The live cattle complex continues to chop sideways as the market patiently waits to see what develops later this week in regard to fed cash cattle prices and Friday's Cattle on Feed report. Some cash cattle trade could begin to develop Wednesday, but it's likely the market holds out until Thursday or Friday to really get underway. Prices are expected to be softer in the South and steady at best in the North. August live cattle closed $0.55 higher at $182.67, October live cattle closed $0.72 higher at $184.52 and December live cattle closed $0.80 higher at $186.45.
Tuesday's slaughter is estimated at 121,000 head -- 1,000 head more than a week ago and 6,000 head less than a year ago.
Boxed beef prices closed lower: choice down $2.23 ($319.26) and select down $3.23 ($301.59) with a movement of 150 loads (97.86 loads of choice, 37.03 loads of select, 4.37 loads of trim and 11.13 loads of ground beef).
WEDNEDSAY'S CATTLE CALL: Steady to somewhat lower. Given that boxed beef prices are trending lower, it's likely packers will again be able to push this week's cash market lower.
FEEDER CATTLE:
Even though corn prices ended on a slightly stronger note, the feeder cattle complex didn't seem to mind as the live cattle contracts lent feeders plenty of support. August feeders closed $0.15 lower at $258.62, September feeders closed $0.62 higher at $259.52 and October feeders closed $0.77 higher at $259.25. As the market trudges through the dog days of summer, market talking points become minimal as the futures complex has historically softened through July, seeming to follow fed cash cattle prices lower until the heat breaks in the fall. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week steers and heifers sold $4.00 to $8.00 lower. Feeder cattle supply over 600 pounds was 69%. The CME Feeder Cattle Index 7/15/2024: down $0.51, $261.37.
LEAN HOGS:
The lean hog complex didn't sleep through Tuesday's market as the futures complex closed anywhere from $1.00 to $2.00 higher, the cash market saw just shy of 10,000 head trade and pork cutout values closed over $2.50 higher. All in all, hogs on Tuesday found support from every angle of the market and traders reacted well to the added encouragement. The afternoon carcass price is slightly skewed by the ham's $9.71 jump, but a higher close is a higher close -- end of story. August lean hogs closed $2.85 higher at $91.27, October lean hogs closed $2.42 higher at $72.20 and December lean hogs closed $1.75 higher at $64.12. Pork cutouts totaled 284.84 loads with 248.47 loads of pork cuts and 36.36 loads of trim. Pork cutout values: up $2.58, $100.87. Tuesday's slaughter is estimated at 477,000 head -- 1,000 head more than a week ago and 15,000 head more than a year ago. The CME Lean Log Index 7/12/2024: up $0.04, $88.42.
WEDNESDAY'S HOG CALL: Steady. Given that the cash hog market saw good packer interest this afternoon could mean they'll be less aggressive on Wednesday if they fulfilled the majority of their needs for the week.
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