GENERAL COMMENTS:
The livestock complex rounded out the day mixed as both the live cattle and feeder cattle contracts were able to close higher thanks to cheaper corn prices, but the lean hog complex had a more cautious approach to Tuesday's markets. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.54 with a weighted average price of $94.51 on 6,208 head. December corn is down 27 1/4 cents per bushel and December soybean meal is down $13.50. The Dow Jones Industrial Average is up 212.03 points.
LIVE CATTLE:
The live cattle complex saw the weakness in today's corn market and elected to take advantage of the opportunity to trade higher although boxed beef prices are still trending lower and not much action has been seen in the cash cattle complex. August live cattle closed $1.90 higher at $172.50, October live cattle closed $2.05 higher at $176.07 and December live cattle closed $1.80 higher at $180.17. The market is far from nearing any immediate pressure so so long as traders stage engaged and remain confident, there's room to trade higher. A light trade was reported in Kansas at $178 which is $2.00 lower than last week's market, but not many have traded so don't put too much clout in that early price sighting. Southern asking prices remain firm at $182 and asking prices in the North still remain elusive. Trade could be delayed until the second half of the week, but feedlots could also elect to roll this week's showlist over to next week when packers are prone to be more eager in the market and will likely be willing to pay higher prices as the long holiday weekend would be behind them.
Tuesday's slaughter is estimated at 126,000 head -- 1,000 head less than a week and a year ago.
Boxed beef prices closed lower: choice down $3.81 ($329.23) and select down $1.24 ($298.43) with a movement of 147 loads (80.27 loads of choice, 35.40 loads of select, 14.03 loads of trim and 17.07 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. It's tough telling what this week's cash cattle market will do as packers look at multiple days ahead of them with reduced kill schedules, but know all too well that front-end supplies of cattle are still incredibly thin.
FEEDER CATTLE:
"Ready, set run" seemed to be the approach the feeder cattle complex deployed throughout Tuesday's market as the contracts closed $3.00 to $4.00 higher. The market was fueled and motivated by the extreme descent in corn prices, which rounded out the day $0.14 to $0.27 lower. The spot August contract gapped higher but still remains far enough away from resistance pressure to have plenty of more upside potential this week if corn prices remain depressed. August feeders closed $4.82 higher at $238.50, September feeders closed $4.47 higher at $241.97 and October feeders closed $4.22 higher at $244.32. At the Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers traded $3.00 to $8.00 higher with instances of $15.00 higher. Feeder heifers sold $2.00 to $5.00 stronger. Steer calves sold $4.00 to $8.00 lower, although the 400 to 500 weights traded steady. Heifer calves sold $4.00 to $6.00 lower. Feeder cattle supply over 600 pounds was 70%. The CME feeder cattle index 6/26/2023: up $3.52, $224.97.
LEAN HOGS:
The lean hog contracts danced throughout Tuesday's trade seeming reluctant to do much of anything which then led to the market's mixed end with the nearby contracts keeping a positive gain ahead of closing, but the deferred contracts weren't as lucky. July lean hogs closed $0.72 higher at $94.12, August lean hogs closed $1.00 higher at $91.05 and October lean hogs closed $0.45 lower at $79.77. By the day's end, the cash hog market did see more interest as both today's volume and price were higher than Monday's, although in the grand scheme of things, today's movement was still thin. Pork cutout values are unavailable on the Daily Direct Pork Cutout report due to packer submission issues. Tuesday's slaughter is estimated at 466,000 head -- 3,000 head less than a week ago and 20,000 head more than a year ago. The CME lean hog index 6/23/2023: up $0.70, $92.11.
WEDNESDAY'S HOG CALL: Higher. Today's prices were higher, but with packers only buying close to 6,000 head, they'll need to procure more hogs before the week is over.
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