GENERAL COMMENTS:
If you feel like your little hometown is singing the National anthem next week, stronger than you've ever heard it before, you're probably not wrong as cattlemen are beaming with excitement over this market. Normally, Fridays ahead of a holiday are mundane and boring, but, this Friday, the market couldn't have been further from that, with the sharp increase in corn plantings sending cattle back over the moon! Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $3.04 with a weighted average price of $90.96 on 2,281 head. December corn is down 33 3/4 cents per bushel and December soybean meal is up $16.80. The Dow Jones Industrial Average is up 285.18 points.
From Friday to Friday, livestock futures scored the following changes: June live cattle up $4.00, August live cattle up $6.40; August feeder cattle up $13.63, September feeder cattle up $13.13; July lean hogs up $4.38, August lean hogs up $2.93; July corn down $0.76, September corn down $0.96.
LIVE CATTLE:
The live cattle complex is marching into the weekend with a wide smile as the market's fundamentals are strong and traders helped push the contracts higher ahead of the day's end. The spot August contract scored a new contract high ahead of closing as traders couldn't help but run the contract higher upon seeing dramatically higher corn plantings and understanding the supply/demand scenario of this year's market. August live cattle closed $2.67 higher at $177.17, October live cattle closed $1.87 higher at $179.55 and December live cattle closed $1.85 higher at $183.52. Feedlots let some more cattle go ahead of the weekend, but they at least made packers work to get them. By the week's end, dressed Northern cattle had traded for $288 to $290, which is steady to $2.00 lower, but live Northern cattle traded for $182 to $184 which is $1.00 lower to $1.00 higher than last week's weighted average. Southern live cattle traded for $178, which is $1.00 to $2.00 lower than last week's weighted average.
Friday's slaughter is estimated at 123,000 head, 3,000 head more than a week ago and 1,000 head more than a year ago. Saturday's slaughter is projected to be around 19,000 head. This week's slaughter is estimated at 644,000 head, 5,000 head less than a week ago but 3,000 head more than a year ago.
Boxed beef prices closed lower: choice down $0.33 ($327.72) and select down $3.55 ($293.63) with a movement of 98 loads (57.71 loads of choice, 20.20 loads of select, 9.67 loads of trim and 10.51 loads of ground beef).
MONDAY'S CATTLE CALL: Higher. The cash cattle market won't likely see any interest on Monday, but come Wednesday, when the Fourth of July holiday is behind us, packers are going to be hungry for cattle.
FEEDER CATTLE:
Traders weren't sleeping on the job Friday as the jump in corn acres sent feeder cattle over the moon! Friday, USDA estimated 94.1 million acres of corn plantings, which is the largest area since 2013. The news caught the attention of the feeder cattle complex and traders wasted no time sending the feeder cattle contracts $3.00 to $5.00 higher. New contract highs were the theme of the nearby feeder cattle contracts, and this type of elevated energy could very well carry into next week. August feeders closed $5.20 higher at $247.57, September feeders closed $5.02 higher at $250.82 and October feeders closed $4.70 higher at $252.52.
The Oklahoma Weekly Cattle Auction Summary shared that, compared to last week, feeder steers and heifers traded $5.00 to $10.000 higher. Steer and heifer calves traded mostly steady expect the 400- to 500-pound steers sold $5.00 to $15.00 higher. Slaughter cows sold steady to $1.00 higher and slaughter bulls traded $4.00 higher. Feeder cattle supply over 600 pounds was 61%. The CME Feeder Cattle Index for June 29: up $1.78, $232.75.
LEAN HOGS:
The sharp increase in corn plantings helped prop the nearby lean hog contracts up ahead of closing, but the deferred contracts still closed lower. The market didn't see much other support as pork cutout values closed lower and the cash hog market only saw a measly 2,281 head traded today. July lean hogs closed $0.20 higher at $95.65, August lean hogs closed $0.27 higher at $92.60 and October lean hogs closed $0.97 lower at $78.37. Next week, the hog complex will be tasked on setting a direction for the market as it merely chopped sideways this past week and received mixed next from Thursday's Quarterly report. Pork cutouts totaled 227.01 loads with 204.20 loads of pork cuts and 22.81 loads of trim. Pork cutout values: down $0.45, $102.45. Friday's slaughter is estimated at 447,000 head, 5,000 head less than a week ago and 13,000 head more than a year ago. Saturday's slaughter is projected to be around 73,000 head. The CME Lean Hog Index for June 28: up $0.46, $93.42.
MONDAY'S HOG CALL: Lower. It's unlikely that packers will be active in Monday's cash market given that Tuesday's is a holiday and plants will be dark.
No comments:
Post a Comment