GENERAL COMMENTS:
For the cattle complex, Wednesday's market was rather supportive as traders continue to run higher on the fact that corn prices keep trending lower and that feedlots seem extremely committed to seeing cash prices either trade steady this week or that they'll simply hold over their showlists. Meanwhile, the hog market closed mostly lower as traders don't want to do anything with the market until they see what Thursday's Quarterly Hogs and Pigs report brings. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.30 with a weighted average price of $94.21 on 6,486 head. December corn is down 24 1/4 cents per bushel and December soybean meal is down $7.40. The Dow Jones Industrial Average is down 74.08 points.
LIVE CATTLE:
The live cattle continued to trade higher through Wednesday's end as traders felt reassured by their recent days of higher trading with corn prices still trading lower and by the fact that feedlot managers seem committed to keeping the market at least steady this week. August live cattle closed $1.37 higher at $173.87, October live cattle closed $0.95 higher at $177.02 and December live cattle closed $0.70 higher at $180.87. I'm hopeful that given the fact that the week has yet to see many cash cattle trade at this point that feedlots are either going to demand that prices stay at least steady this week or that they'll simply deny trading any cattle. Feedlots sit in a strong position this week as their showlists are current (extremely current) and it wouldn't hurt them to roll over this week's offering to next week. The only negative outcome of this week's cash cattle market would be trading cattle lower -- if feedlots hold onto their offering or trade them at steady/somewhat higher prices, both of those options are a win-win.
Wednesday's slaughter is estimated at 126,000 head -- 1,000 head more than a week and a year ago.
Boxed beef prices closed lower: choice down $1.33 ($327.90) and select down $1.75 ($296.68) with a movement of 105 loads (60.22 loads of choice, 19.69 loads of select, 14.64 loads of trim and 10.73 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Feedlots seem extremely committed to holding the market at least steady this week.
FEEDER CATTLE:
The feeder cattle complex rallied through Wednesday's end as the market couldn't help but take an aggressive stance and propel its prices higher with the nearby corn contracts closing $0.24 to $0.33 lower. When feeder cattle buyers look at today's marketplace, they see some more opportunity than what was present in recent days as grain prices continue to regress. Feeder cattle prices are still and penciling a breakeven can be tough with nearly all inputs higher, but if corn prices can show feeders some mercy and the cash cattle market remain snappy -- then opportunity and optimism remain. August feeders closed $1.75 higher at $240.35, September feeders closed $1.75 higher at $243.72 and October feeders closed $1.65 higher at $245.97. At Huss Livestock Auction in Kearney, Nebraska compared to their last sale two weeks ago steers over 600 pounds sold steady to $5.00 higher and heifers over 600 pounds traded steady. The crowd was full, and demand was good. Feeder cattle supply over 600 pounds was 78%. The CME feeder cattle index 6/27/2023: up $1.04, $226.01.
LEAN HOGS:
The cash market wasn't any help and pork cutout values rounded out the day lower too which left the lean hog complex with little reason to close higher. The nearby contracts were able to remain elevated through the day's end, but the deferred contracts remained skeptical of taking a higher position ahead of seeing what Thursday's Quarterly Hogs and Pigs Report could do. For the hog complex, Thursday's focus will be solely centered on seeing what the latest Quarterly report presents and how that could affect both demand and prices in the near future and through the remainder of the year. July lean hogs closed $0.15 higher at $94.27, August lean hogs closed $0.05 higher at $91.10 and October lean hogs closed $0.40 lower at $79.37. Pork cutouts total 172.75 loads with 157.42 loads of pork cuts and 15.33 loads of trim. Pork cutout values: down $1.08, $99.08. Wednesday's slaughter is estimated at 450,000 head -- steady with a week ago and 17,000 head less than a year ago. The CME lean hog index 6/26/2023: up $0.41, $92.52.
THURSDAY'S HOG CALL: Steady/somewhat lower. Packers aren't seeming to be in dire need of hogs this week which makes perfect sense given that multiple days later this week and early next week will be dark processing days for packers where either fewer hogs are processed or kills are cut completely for the holiday's sake.
No comments:
Post a Comment