GENERAL COMMENTS:
It was a tough day for the livestock complex, and an especially rough day for the live cattle market. Heading into Thursday's market, more cash cattle trade is expected to develop, and especially in the North. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $3.46 with a weighted average of $122.45 on 15,829 head. July corn is up 7 1/4 cents per bushel and July soybean meal is up $1.10. The Dow Jones Industrial Average is down 47.12 points.
LIVE CATTLE:
You might as well have cried "fire in the hole" come Wednesday, as it felt like the market twitched at little landmines throughout the day. First, the board took a lower approach to the day, ultimately closing $1.00 to $1.70 lower as pressures have mounted. One of those pressures was the CME noting that 25 deliveries were noted in Tulia, Texas, which heavily pressured the soon expiring June contract. Another pressure was that cash cattle were thinly traded throughout the day in the South at $138, which is steady to $2.00 lower than last week. June live cattle closed $1.70 lower at $136.12, August live cattle closed $1.32 lower at $134.92 and October live cattle closed $1.22 lower at $141.07. The North had bids offered to the region throughout the day, but as supplies are more current in the North, feedlots weren't overly excited or worried about accepting the weaker money and hoped to see higher bids come Thursday.
Wednesday's slaughter is estimated at 126,000 head, steady with a week ago and 10,000 head more than a year ago.
Boxed beef prices closed lower: choice down $0.99 ($266.57) and select down $0.71 ($245.99) with a movement of 157 loads (98.60 loads of choice, 30.32 loads of select, 17.10 loads of trim and 10.50 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady. Given that Northern feedlots have mostly resisted the weaker bids offered up by packers, it's likely that packers show a little more interest in Thursday's market as they still need to get cattle bought, especially in the North.
FEEDER CATTLE:
The corn market rounded out the day mostly lower, seeing a steady $0.07 set back in the 2022 contracts other than the spot July contract, which gained $0.07. And while the corn market didn't add much pressure for the feeder cattle market, the lack of trader interest that the complex saw was enough to send it lower in and of itself, let alone considering the doggish tone of the live cattle contracts. More than anything, the feeder cattle market is looking for stability and direction, and Wednesday's market offered none of that. August feeders closed $2.15 lower at $173.15, September feeders closed $1.97 lower at $175.30 and October feeders closed $1.67 lower at $177.30. At Winter Livestock Auction in Dodge City, Kansas, compared to last week, feeder steers weighing 800 to 925 pounds traded $3.00 to $5.00 lower and feeder heifers weighing 800 to 900 pounds traded $1.00 to $3.00 higher. There weren't enough calves and yearlings sold to establish any sort of trend. Slaughter cows traded $4.00 to $5.00 lower and slaughter bulls sold steady to $1.00 higher. The CME Feeder Cattle Index for June 21: up $0.18, $165.21.
LEAN HOGS:
The lean hog complex took the same stance as the cattle contracts and worked with a mostly lower futures market Wednesday. July lean hogs closed $0.87 lower at $111.85, August lean hogs closed $1.47 lower at $108.32 and October lean hogs closed $0.62 lower at $93.95. The cash market was able to move a considerable volume of hogs by the day's end, pushing 15,829 head at $3.46 higher than Tuesday market. It helped that pork cutout values closed higher -- with bellies leading the move by gained $2.73 and butt cuts gaining $2.21 throughout the day. Pork cutouts total 258.59 loads with 231.50 loads of pork cuts and 27.09 load of trim. Pork cutout values: up $0.29, $111.15. Wednesday's slaughter is estimated at 469,000 head, 3,000 head less than a week ago and 4,000 head less than a year ago. The CME Lean Hog Index for June 20: up $1.29, $110.45.
THURSDAY'S CASH HOG CALL: Steady to somewhat lower. It wouldn't be surprising to see packers somewhat active again in Thursday's market, but prices won't likely be higher.
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