GENERAL COMMENTS:
It was a supportive day for the cattle complex as both the live cattle and feeder cattle contracts capitalized on the corn market's lower close, but the lean hog market continues to lack traction in this week's market. Hog prices closed lower higher on the Daily Direct Afternoon Hog Report, up $0.58 with a weighted average price of $106.31 on 19,916 head. December corn is down 17 cents per bushel and December soybean meal is up $2.50. The Dow Jones Industrial Average is up 82.05 points.
LIVE CATTLE:
The live cattle complex closed mixed with some of its deferred contracts (February 2024 through June 2024), closing lower while the rest of the market charged onward. Even though boxed beef prices closed mixed, traders are still finding it supportive that the cuts are seeing better interest and that consumers are continuing to buy beef regardless of what the economy and interest rates do. No sizeable cash cattle trade has been reported at this point as packers and feedlots again go toe to toe this week. It's tough telling who will win this week's battle in the cash market as packers were able to get a sizeable volume of cattle bought last week, but the two weeks before that they extremely light on their purchases. Asking prices in the South are noted at $180 to $182, but remain elusive in the North. August live cattle closed $0.37 higher at $178.67, October live cattle closed $0.35 higher at $179.95 and December live cattle closed $0.25 higher at $183.55. Wednesday's slaughter is estimated at 126,000 head, 4,000 head more than a week ago and 2,000 head more than a year ago.
Boxed beef prices closed mixed: choice down $0.88 ($303.34) and select up $2.26 ($279.81) with a movement of 114 loads (77.40 loads of choice, 21.15 loads of select, 3.41 loads of trim and 12.16 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to $2.00 higher. With packers and feedlots again going rounds this week, it's anyone's game at this point on what cash cattle prices could do.
FEEDER CATTLE:
With corn prices closing an additional $0.16 to $0.17 lower, the feeder cattle complex rose to the day's occasion and championed a higher position by Wednesday's end. Bull markets are fun and thrilling, but to watch the feeder cattle market trade wildly during a bull run is especially exciting. While watching some of Northern Livestock Video Auction's Summertime Classic sale, I saw light weight calves (weighing less than 400 pounds) sell for over $4.00 earlier Wednesday, which is incredible! August feeders closed $0.97 higher at $244.20, September feeders closed $1.10 higher at $247.45 and October feeders closed $1.05 higher at $249.45. The CME Feeder Cattle Index for July 25: up $0.39, $242.01.
LEAN HOGS:
The lean hog complex simply lacked the support necessary to close higher Wednesday afternoon and kept with its lackluster nature through the day's end. Yes, cash prices closed higher and close to 20,000 head traded, but pork cutout values closed lower, and traders simply aren't seeing enough well-rounded support to justify breaking through the resistance at $85.00. August lean hogs closed steady at $101.65, October lean hogs closed $0.75 lower at $83.62 and December lean hogs closed $0.62 lower at $76.37. Pork cutouts totaled 263.84 loads with 233.19 loads of pork cuts and 30.65 loads of trim. Pork cutout values: down $0.31, $112.75. Wednesday's slaughter is estimated at 465,000 head, 3,000 head less than a week ago and 2,000 head less than a year ago. The CME Lean Hog Index for July 24: up $0.66, $105.26.
THURSDAY'S HOG CALL: Steady to somewhat lower. Packers could mildly support the market again on Thursday, but it's unlikely that they'll need enough hogs to push prices any higher this week.
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