GENERAL COMMENTS:
Technically speaking, the cattle complex had a good day as the contracts were able to close higher after being beat up throughout Wednesday's market because of high corn prices. But cash cattle trade did develop lower in the North late Thursday afternoon. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.55 with a weighted average price of $94.79 on 4,793 head. December corn is down 8 cents per bushel and July soybean meal is down $14.50. The Dow Jones Industrial Average is down 32.45 points.
LIVE CATTLE:
The live cattle complex had a good day as the contracts were able to close higher despite seeing cash cattle prices trade softer in the North. August live cattle closed $1.40 higher at $171.15, October live cattle closed $1.72 higher at $174.67 and December live cattle closed $1.75 higher at $178.67. A moderate trade was reported in Nebraska where dressed cattle were trading for $290, which is $6.00 lower than last week's weighted average. Earlier in the day, some live trade was reported in Kansas at $180, which is steady with the rest of the week's business and $2.00 lower than last week's weighted average. Some more clean up trade is likely to develop, but it's likely that the week's prices are set. Thursday's slaughter is estimated at 125,000 head, 1,000 head less than a week ago and 2,000 head more than a year ago.
Thursday's actual slaughter data shared that, for the week ending June 4, 2023 steers averaged 882 pounds, which is 5 pounds less than the previous week but steady with a year ago. For the same week, heifers averaged 812 pounds, which is 4 pounds lighter than the previous week but 2 pounds less than a year ago.
Boxed beef prices closed mixed: choice up $0.22 ($334.47) and select down $0.45 ($303.80) with a movement of 98 loads (53.05 loads of choice, 27.88 loads of select, 7.61 loads of trim and 9.38 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that prices have now been developed in both regions, prices will likely remain steady with the week's trend.
FEEDER CATTLE:
The feeder cattle complex rallied throughout Thursday's trade as the market was relieved to see corn prices trading lower after Wednesday's blood bath. The nearby corn contracts closed $0.06 to $0.10 lower with allowed for the feeder cattle contracts to close mostly $3.00 higher and regain a substantial portion of the market position lower on Wednesday. August feeders closed $2.95 higher at $230.67, September feeders closed $3.10 higher at $234.52 and October feeders closed $3.27 higher at $237.17. At Clovis Livestock Auction in Clovis, New Mexico, compared to last week, steer calves weighing 300 to 350 pounds sold $9.00 lower, steers weighing 400 to 450 pounds sold $12.00 higher, steers weighing 500 to 550 pounds sold $6.00 and steers weighing 650 to 700 pounds sold $11.00 higher. Feeder heifers weighing 650 to 700 pounds sold $4.00 higher. Slaughter cows sold $3.00 to $7.00 higher and slaughter bulls sold $6.00 to $8.00 lower. Feeder cattle supply over 600 pounds was 26%. The CME Feeder Cattle Index for June 21: down $0.45, $221.73.
LEAN HOGS:
The lean hog complex rounded out the day lower even after hearing the exciting news that the implementation of California's Prop 12 would be delayed until Dec. 31. Even so, the market closed lower as traders continue to be leery of the resistance looming around $95.00 in the spot August contract, and they didn't see any support in the cash market as prices traded lower on the thin volume sold. July lean hogs closed $2.90 lower at $91.85, August lean hogs closed $2.80 lower at $89.97 and October lean hogs closed $1.20 lower at $79.85. Thursday afternoon's carcass price was able to close higher thanks to a whopping $15.08 gain in the rib, as well as the $4.65 jump in the belly. Pork cutouts totaled 299.84 loads with 268.04 loads of pork cuts and 31.80 loads of trim. Pork cutout values: up $0.42, $96.50. Thursday's slaughter is estimated at 463,000 head, 2,000 head more than a week ago and 5,000 head less than a year ago. The CME Lean Hog Index for June 20: up $0.87, $89.62.
FRIDAY'S HOG CALL: Lower. It's likely that packers have fulfilled their needs for the week and won't need to buy any more hogs this week.
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