GENERAL COMMENTS:
It's an important day for the livestock complex as the cash cattle traders are battling out this week's market, and the hog complex is anxiously waiting for Wednesday afternoon's Quarterly report. The South has seen cattle trade at $138 which is steady to $1.00 lower, but so far, the North hasn't budged on their want to push prices higher again this week. December corn is down 4 1/2 cents per bushel and July soybean meal is up $8.90. The Dow Jones Industrial Average is down 30.53 points.
LIVE CATTLE:
Once again Southern feedlots have begun to sell their week's supply of cattle, but the North isn't willing to compromise and take these steady prices. Northern feedlots are keenly aware of how thin supplies are in their region, and they seem to be unwilling to squander this opportunity to push the market higher as they hold substantial leverage in the market right now. Some Southern cattle have sold for $138 in Texas and Kansas, which is steady to $1.00 lower, and bids are being offered in Nebraska at $148 but feedlots aren't biting at that offer. The board isn't lending any support as it continues to fall lower and pressure nearby support. August live cattle are down $0.45 at $132.35, October live cattle are down $0.40 at $139.00 and December live cattle are down $0.55 at $144.70.
The Fed Cattle Exchange Auction held Wednesday reported 10 lots, totaling 1,628 head of cattle, all listings were for Texas. Only 1 lot (265 head) sold at $138.
Boxed beef prices are lower: choice down $1.59 ($265.55) and select down $1.98 ($241.33) with a movement of 56 loads (30.48 loads of choice, 15.97 loads of select, 0.02 loads of trim and 9.69 loads of ground beef).
FEEDER CATTLE:
The quite nature of this week's cash cattle market has left the feeder cattle market to fend for itself while the corn complex scraps to regain some ground. The market's pressure comes from seeing the July corn contract trade confidently $0.12 higher, but the rest of the nearby corn contracts are steadily trading $0.02 to $0.03 lower into the afternoon. Thankfully buyers have continued to support this week's market in the countryside as they know that most sales will be shut down next week for the 4th of July holiday, and if they want to get cattle bought before the middle of July, now's the time. August feeders are down $0.97 at $170.82, September feeders are down $1.20 at $173.75 and October feeders are down $1.25 at $176.37.
LEAN HOGS:
The lean hog market is again seeing mixed interest from traders as the market's nearby contracts fall slightly lower, but the deferred months of 2022 trend higher into the 2023 contracts. July lean hogs are down $0.52 at $109.40, August lean hogs are down $0.20 at $103.62 and October lean hogs are up $0.30 at $90.50. it's been a tough week for the market thus far with both processing speeds waning and pork cutout values trending lower. The market is hopeful that Wednesday afternoon's Quarterly Hogs and Pigs report will help bring back interest into the market, but time will tell.
The projected lean hog index for June 28 is down $0.38 at $111.24, and the actual index for June 27 is up $0.27 at $111.62. Hog prices are higher on the Daily Direct Morning Hog Report, up $5.32 with a weighted average of $119.86, ranging from $112.50 to $125.00 on 7,640 head and a five-day rolling average of $118.13. Pork cutouts total 148.30 loads with 135.22 loads of pork cuts and 13.08 loads of trim. Pork cutout values: up $4.91, $110.38.
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