GENERAL COMMENTS:
It was a strong day for the cattle complex as both the live cattle and feeder cattle contracts closed higher, and the cash cattle market continues to wait for better bids from packers before they'll trade cattle. Meanwhile, the lean hog complex closed mixed, with the nearby contracts receiving more support than the deferred. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.68 with a weighted average price of $90.97 on 3,127 head. December corn is down 1 3/4 cents per bushel and December soybean meal is up $0.90. The Dow Jones Industrial Average is down 23.85 points.
** The markets will be closed on Thursday, July 4, and regular DTN commentary will resume on Friday, July 5. Happy Fourth of July Friends!**
LIVE CATTLE:
The live cattle complex sported stronger tones through Wednesday's end, seeming to tout the market's bullish fundamental front ahead of the Fourth of July holiday. Still no cash cattle have traded, and it's anyone's guess if trade will develop late Wednesday afternoon, or if packers and feedlots are going to have to hash out prices Friday sometime following Thursday's fireworks. Bids of $186 to $188 were offered all throughout the day in Kansas, and bids of $308 to $310 were offered in Nebraska, but with asking prices firmly set at $192 in the South and $315 in the North -- feedlots weren't willing to accept packer's early bids. August live cattle closed $0.82 higher at $185.92, October live cattle closed $1.20 higher at $186.85 and December live cattle closed $1.20 higher at $188.85.
Wednesday's slaughter is estimated at 120,000 head -- 3,000 head more than a week ago and 6,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.55 ($329.84) and select down $2.10 ($304.38) with a movement of 107 loads (61.71 loads of choice, 27.68 loads of select, 3.19 loads of trim and 14.00 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady to somewhat higher. Given that feedlots aren't in a hurry to trade cattle and have the option to roll over their showlists if they want to, I don't foresee cattle trading any cheaper than steady this week.
FEEDER CATTLE:
With the added support of the higher trend for live cattle contracts, the bullish nature of the feeder cattle complex came alive through Wednesday's trade as traders led the contracts mostly $2.00 higher before the day's end. August feeders closed $2.27 higher at $263.37, September feeders closed $2.30 higher at $263.62 and October feeders closed $2.07 higher at $263.52. The spot August contract was able to close above the market's 100-day moving average which is always a positive, bullish technical sign. The CME feeder cattle index 7/2/2024: down $1.14, $256.44.
LEAN HOGS:
The lean hog complex wasn't 100% convinced that its market should trade fully higher, which is why just the nearby contracts closed higher while the deferred months remained lower through today's close. Helping matters for the nearby contracts has been the immense packer interest in the cash market as of late. Yes, prices closed slightly lower this afternoon, but following Tuesday's movement where over 14,000 head were traded -- that was fully expected. July lean hogs closed $0.52 higher at $89.75, August lean hogs closed $0.05 higher at $89.82 and October lean hogs closed $0.10 lower at $74.17. The afternoon cutout price closed slightly lower which was mostly due to the fact that the butt fell $8.53, although the belly did close $1.93 lower too. Pork cutouts totaled 227.59 loads with 203.21 loads of pork cuts and 24.38 loads of trim. Pork cutout values: down $0.69, $93.63. Wednesday's slaughter is estimated at 479,000 head -- 13,000 head more than a week ago and 6,000 head more than a year ago. The CME lean hog index 7/1/2024: up $0.14, $89.31.
FRIDAY'S HOG CALL: Lower. Given that packers were extremely aggressive early in the week procuring hogs, I don't think they'll need to buy much on Friday, if any at all.
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