GENERAL COMMENTS:
It was a slow day for the livestock complex as the contracts struggled to draw any sizeable attention from traders, but low and behold, before the day closed, the market was able to scale higher in the live cattle, lean hog and feeder cattle contracts. Hog prices closed sharply higher on the National Direct Afternoon Hog Report, up $4.72 with a weighted average of $119.72 on 7,305 head. July corn is up 8 1/4 cents per bushel and July soybean meal is down $4.80. The Dow Jones Industrial Average is up 19.10 points and NASDAQ is up 108.58 points.
LIVE CATTLE:
The live cattle market drew in the interest of traders before the day's end and was able to close mildly higher. June live cattle closed $0.17 higher at $117.57, August live cattle closed $0.27 higher at $118.55 and October live cattle closed $0.22 higher at $124.20. The market is trading timidly as there's so much animosity. Traders know that boxed beef prices are preparing for a top and once they peak, cash cattle prices will follow their descend. The cash cattle market didn't do much of anything on Thursday as only a handful of cattle traded in the North for fully steady prices. Thursday's slaughter is estimated at 121,000 head, 1,000 head more than a week ago and 5,000 head more than a year ago.
Thursday's actual slaughter data shard that carcass weights continue to wane lower in the beef sector. For the week ending May 29, steers averaged 884 pounds (down four pounds from the previous week) and heifers averaged 817 pounds (down 1 pound from the previous week).
Boxed beef prices closed mixed: choice down $0.40 ($338.25) and select up $2.53 ($310.40) with a movement of 110 loads (62.83 loads of choice, 14.97 loads of select, 9.58 loads of trim and 22.23 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. This week's cash cattle market is virtually done with as packers have bought in both the North and the South and don't have to wildly seek the cash market given that they have cattle committed for this time.
FEEDER CATTLE:
Even though the corn market closed mildly higher, the feeder cattle contracts saw the live cattle market's push to close fully higher and followed in their footsteps. August feeders closed $0.12 higher at $148.40, September feeders closed $0.15 higher at $150.90 and October feeders closed $0.20 higher at $153.12. The spot August contract still linger far below the 100-day moving contract ($153.08) and even below the 40-day moving contract ($150.47). If June can kick processing speeds into high gear like the market has historically seen, then feeders may feel some optimism in the market as feedlots could be given a chance to move some inventory. At Winter Livestock Auction in Pratt, Kansas, at the midsession point, compared to last week, feeder steers weighing 700 to 975 pounds sold $2.00 to $3.00 lower. There were approximately 20 loads of fancy feeder steers weighing 875 to 950 pounds which sold steady. Feeder heifers weighing 600 to 900 pounds sold steady, and heifers weighing 900 to 975 pounds sold $2.00 higher. The CME Feeder Cattle Index for June 9: down $0.13, $139.91
LEAN HOGS:
Even though pork cutouts have closed mildly lower for two days in a row, the stellar demand in the cash market and the ambition seen in processing speeds is keeping the market's morale heightened to where traders feel comfortable moving the market higher. The July and August contracts were the only contracts to close lower, and otherwise the market saw gains ranging from $0.17 to $0.75 higher. June lean hogs closed $0.50 higher at $122.45, July lean hogs closed $0.17 lower at $121.32 and August lean hogs closed $0.05 lower at $118.70. Pork cutouts total 305.94 loads with 276.42 loads of pork cuts and 29.52 loads of trim. Pork cutout values: down $0.33, $134.05. Thursday's slaughter is estimated at 482,000 head, 12,000 head more than a week ago and 27,000 head more than a year ago. The CME Lean Hog Index for June 8: up $0.94, $118.71.
Thursday's actual slaughter data shared lighter weights for the hog sector. For the week ending May 29, live weights averaged 287 pounds (down 1 pound from the previous week) and dressed weights averaged 214 pounds (down 1 pound from the previous week).
FRIDAY'S CASH HOG CALL: Steady to somewhat higher. Given that packers have been so aggressive in this week's cash market, they may let the market cool down heading into the weekend. But there's equally as good of a chance that they keep buying to secure necessary supplies.
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