GENERAL COMMENTS:
All in all, it was another strong day for the livestock complex as all three markets closed higher. Helping boost the cattle market's moral was the fact that Southern live cattle have began to trade for $188 which is steady with last week's weighted average. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.03 with a weighted average price of $85.08 on 7,576 head. December corn is up 3 cents per bushel and December soybean meal is up $2.00. The Dow Jones Industrial Average is up 243.60 points.
LIVE CATTLE:
It was a glorious day for the live cattle/cash cattle markets as not only did the live cattle contracts close higher, but the cash cattle market saw live cattle prices trade steady in the South as well. Today's trade was pivotal for the complex as not only did the market's higher close move the spot August contract further away from the 40-day and 100-day moving average (showing resiliency) but seeing cash prices trade steady in the South also proved that packers are still in need of cattle. It was expected earlier this week that cash cattle prices would trade steady at best in the North and likely for lower money in the south -- but thus far that assumption has been incorrect. Around the noon hour Southern live cattle began to trade for $188 which is steady with last week's weighted average. There hasn't been any dressed cattle trade yet, but given that Southern prices have held steady, seeing dressed cattle trade for $1.00 to $2.00 higher this week isn't out of the question. August live cattle closed $1.60 higher at $184.27, October live cattle closed $1.05 higher at $185.57 and December live cattle closed $0.85 higher at $187.30.
Wednesday's slaughter is estimated at 121,000 head -- 1,000 head less than a week and year ago.
Boxed beef prices closed lower: choice down $1.10 ($318.16) and select down $3.15 ($298.44) with a movement of 163 loads (114.03 loads of choice, 31.01 loads of select, 3.70 loads of trim and 13.80 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady/$2.00 higher. Given that cattle have traded steady in the South, it's not unlikely that Northern feedlots may be able to push the cash market $1.00 to $2.00 higher.
FEEDER CATTLE:
Even though the feeder cattle complex was slow to come to the party, the market was able to round out the day higher as traders were comforted by the steady trade noted in the Southern plains and by the live cattle market's higher climb. It was only the spot August contract which closed lower, as it continues to be technically pressured by the 40-day and 100-day moving averages. August feeders closed $0.07 lower at $258.55, September feeders closed $0.02 higher at $259.55 and October feeders closed $0.15 higher at $259.40. Feeder cattle sale receipts are lighter this week as hot temperatures plague the country, and cattlemen are electing to wait until cooler weather comes to haul their calves into town. The CME feeder cattle index 7/16/2024: down $0.05, $261.32.
LEAN HOGS:
The lean hog complex had another powerful day as not only did the futures complex close higher, but so did the cash hog market. Unfortunately, the disappointing part of the day's end was that pork cutout values closed slightly lower, but with a $5.46 decline on the ham, and a $4.92 decline on the butt, the carcass price was bound to suffer. There's a chance that Thursday's export report could lend the market some additional support if sales are strong, but there's also a chance that traders slow their ambitions given today's lower cutout price. August lean hogs closed $0.37 higher at $91.65, October lean hogs closed $1.47 higher at $73.67 and December lean hogs closed $1.75 higher at $65.87. Pork cutouts totaled 270.05 loads with 240.07 loads of pork cuts and 29.98 loads of trim. Pork cutouts values: down $1.55, $99.32. Wednesday's slaughter is estimated at 479,000 head -- 2,000 head more than a week ago and 8,000 head more than a year ago. The CME lean hog index 7/15/2024: up $0.20, $88.62.
THURSDAY'S HOG CALL: Lower. Given that packers have now been aggressive in the cash market for two days in a row likely means that they've secured their cash needs for the week and will be less active in the cash market on Thursday and Friday.
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