GENERAL COMMENTS:
Tuesday ended up being a mixed day for the livestock complex as cattle gained a little more support ahead of the day's end, but the lean hog complex closed fully lower and pork cutout values dipped too. December corn is down 7 1/4 cents per bushel and December soybean meal is down $5.50. The Dow Jones Industrial Average is up 119.30 points.
LIVE CATTLE:
Traders remain extremely mindful of the market's new resistance plane while was established just last Thursday when the spot October contract ran to the highest price point seen since last October. But with Monday's sharp descend, traders were able to allow the live cattle complex to close mildly higher as they acknowledged that they were no longer up against immediate resistance pressure. August live cattle closed $0.72 higher at $187.70, October live cattle closed $0.65 higher at $187.45 and December live cattle closed $0.50 higher at $188.17. Still no developments have surfaced in the cash cattle complex, and it's likely at this point that trade could be delayed until after Wednesday at some point. Bids and asking prices still remain elusive.
Tuesday's slaughter is estimated at 123,000 head -- steady with a week ago and 1,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.33 ($314.48) and select down $0.14 ($301.38) with a movement of 119 loads (74.13 loads of choice, 23.11 loads of select, 10.01 loads of trim and 12.02 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Given that feedlots were able to advance the cash market $2.00 last week, it's likely that the market will trade steady at best this week.
FEEDER CATTLE:
After Tuesday's noon hour, the live cattle complex had a change of heart as traders gave credit to the fact that boxed beef prices are seeing better consumer demand than what was originally expected for late July. The change in market direction for the live cattle complex was just enough to help the feeder cattle market change its attitude as well, but it didn't hurt matters either than the corn complex closed anywhere from $0.06 to $0.07 lower too. August feeders closed $0.55 higher at $256.97, September feeders closed $0.87 higher at $256.95 and October feeders closed $0.67 higher at $255.87. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers traded weaker, with some instances of $5.00 lower on those weighing more than 800 pounds. Feeder heifers sold $2.00 to $5.00 higher. Steer and heifer calves traded steady to $4.00 higher. Feeder cattle supply over 600 pounds was 66%. The CME feeder cattle index 7/29/2024: down $0.02, $258.73.
LEAN HOGS:
Traders weren't able to keep some of the lean hog complex trading higher as the afternoon's pressure weighed on the market. But even so, the day's trade wasn't a total wash as at least cash prices saw a little better interest as just shy of 8,000 head sold. Unfortunately, pork cutout values closed lower, as the only cut that posted a higher close for the day was the rib (up $1.94) but otherwise all the other major cuts rounded out the day weaker. August lean hogs closed $0.25 lower at $91.20, October lean hogs closed $0.05 lower at $74.77 and December lean hogs closed $0.22 lower at $67.62. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.61 with a weighted average price of $84.68 on 7,973 head. Pork cutouts totaled 267.45 loads with 235.08 loads of pork cuts and 32.36 loads of trim. Pork cutout values: down $1.18, $105.60. Tuesday's slaughter is estimated at 481,000 head -- steady with a week ago but 3,000 head more than a year ago. The CME lean hog index 7/28/2024: up $0.44, $92.29.
WEDNESDAY'S HOG CALL: Steady. Given that packers showed a little more interest in Tuesday's cash market, it's still not likely that they secured all their cash needs already for the week so Wednesday's market will likely see the same type of interest from packers.
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