GENERAL COMMENTS:
It was another day of higher closes for the livestock complex as traders support the contracts all the way through the day's end. But heading into Wednesday's market, there will be more at stake for traders to sort through as they'll be watching to see if anything develops in the cash market, if pork cutout values continue to support or not and if feeders can take on the market's resistance and it's 100-day and 40-day moving averages. December corn is up 2 1/4 cents per bushel and December soybean meal is down $0.30. The Dow Jones Industrial Average is down 57.35 points.
LIVE CATTLE:
The live cattle complex was comfortable trading higher in its current sideways trading range as the market expects that feedlots are going to price their showlists higher this week. A few early bids surfaced this afternoon at $187 to $188 live in the South, but with Southern feedlots asking $190, most feedlots elected to let that offer sit on the table. But there was a handful of cattle that did trade in Kansas at $187, which is about $1.00 lower than last week's weighted average. Asking prices in the North remain elusive at this point. Some trade could begin to develop on Wednesday if prices in the Southern plains get stronger, but so long as the board continues to show support, it's likely that feedlots will be willing to wait the week out for the money they desire. August live cattle closed $2.37 higher at $186.30, October live cattle closed $1.52 higher at $186.12 and December live cattle closed $1.37 higher at $187.40.
Tuesday's slaughter is estimated at 123,000 head -- 2,000 head more than a week ago but 2,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.23 ($313.21) and select down $1.67 ($296.66) with a movement of 165 loads (97.19 loads of choice, 40.96 loads of select, 13.22 loads of trim and 13.59 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Given that the board has been very supportive this week, it's likely that feedlots will price their cattle higher this week and aim for steady prices.
FEEDER CATTLE:
The feeder cattle complex sported a strong rally through Tuesday's end as traders went head-to-head with the market's 100-day and 40-day moving average at closing. August feeders closed $2.35 higher at $258.75, September feeders closed $2.10 higher at $258.60 and October feeders closed $2.17 higher at $258.42. At Wednesday's start the market will be pressured to either continue with its rally or submit to the market's nearby resistance at those moving averages and either turn lower or chop sideways. Much of the feeder cattle market's attitude on Wednesday will depend on how the live cattle complex trades and whether or not it receives any trickle-down support. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week feeder cattle and calves sold steady to $4.00 higher. Feeder cattle supply over 600 pounds was 58%.
LEAN HOGS:
Even though pork cutout values ventured lower this afternoon, the lean hog contracts were still able to round out the day on a higher note. August lean hogs closed $1.27 higher at $93.65, October lean hogs closed $1.15 higher at $77.12 and December lean hogs closed $1.47 higher at $69.42. Packers did show a little more interest in this afternoon's cash market, but it's likely that they'll need to be even more aggressive on Wednesday given the processing speeds in which the market has currently been running. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.31 with a weighted average price of $84.35 on 5,825 head. Pork cutouts totaled 312.90 loads with 277.13 loads of pork cuts and 35.76 loads of trim. Pork cutout values: down $1.02, $103.50. Tuesday's slaughter is estimated at 481,000 head -- 4,000 head more than a week and a year ago. The CME lean hog index 7/19/2024: up $0.09, $89.80. The CME feeder cattle index 7/22/2024: up $1.07, $257.74.
WEDNESDAY'S HOG CALL: Steady. Hog prices could hold steady or even potentially trend higher, but hog producers are hoping that the day's volume is larger than the 5,000 head sold this afternoon.
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