Friday Market Watch

 LIVESTOCK:

While the cattle contracts kept with their descend through closing Friday, the lean hog complex opted to grow stronger as the day traded on. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.46 with a weighted average of $112.97 on 7,040 head.

From Friday to Friday, livestock futures scored the following changes: June live cattle off $0.50, August live cattle off $0.80; May feeder cattle off $4.47, August feeder cattle off $4.10; June lean hogs up $8.13, July lean hogs up $7.80. 

Friday's slaughter is estimated at 123,000 head, 3,000 head more than a week ago and 4,000 head more than a week ago. Saturday's slaughter is projected to be around 58,000 head, 16,000 head more than a week ago and 22,000 head less than a year ago. This week's slaughter is estimated at 680,000 head, 23,000 head more than a week ago and 8,000 head more than a year ago.

Boxed beef prices closed mixed: choice up $0.47 ($262.17) and select down $3.04 ($243.02) with a movement of 90 loads (41.68 loads of choice, 15.65 loads of select, 17.56 loads of trim and 14.75 loads of ground beef). Throughout the week choice cuts averaged $261.03 (up $4.08 from a week ago) and select cuts averaged $245.79 (up $2.61 from last week) and the week's total movement of cuts, grinds, and trim totaled 525 loads.

More: Friday Closing Livestock Market Update - Cattle Lower While Hogs Grow Stronger

GRAINS:

July corn closed down 4 1/2 cents and December corn was down 4 cents. July soybeans closed up 14 3/4 cents and November soybeans were up 7 1/4 cents. July KC wheat closed down 42 1/2 cents, July Chicago wheat was down 31 3/4 cents and September Minneapolis wheat was down 50 1/4 cents. 

For the week:

July corn closed down 2 1/2 cents and December corn was down 16 3/4 cents. July soybeans ended up 58 3/4 cents and November soybeans were up 23 1/2 cents. July KC wheat closed down 29 1/4 cents, July Chicago wheat was down 8 3/4 cents and September Minneapolis wheat was down 40 cents.

DAIRY:

MILK

Milk futures put in a positive week, closing higher than the end of last week. What is interesting about it is that Class III futures were not really supported by underlying cash. However, Class IV futures were, due to strong gains of underlying cash. This may not make sense unless you understand that cheese and dry whey drive the Class III price with a little help from butter. Butter and nonfat dry milk are the drivers of Class IV milk. More schools will be winding down next week, continuing to move more milk to manufacturing. This will not overwhelm the market as milk production is currently below year-ago levels. Where it could be overwhelming would be due to the lack of a full workforce in many plants limiting the amount of milk they can process. This has been an ongoing issue. The result of this may be an increase in the amount of milk that might be offered on the spot market. Dairy cattle slaughter for the month of April totaled 237,800 head, a decrease of 59,400 head from March and a decrease of 19,700 head from April 2021. In fact, this is the largest decrease in slaughter from March to April going back through 1994 when I began tracking the numbers. The second-largest decline was in 2000 with a decrease of 57,000 head. This is the smallest monthly slaughter since June 2021.

AVERAGE CLASS III PRICES

3 Month:	$24.74
6 Month:	$24.29
9 Month:	$23.68
12 Month:	$22.91

CHEESE

For the week, blocks increased 7.25 cents will six loads traded. Barrels declined 4.75 cents with 21 loads traded. Dry whey declined 2.50 cents with 21 loads traded. The increase of block cheese price was offset by the decrease of both barrels and dry whey, which, in theory, should have left the market neutral with little change from last week in Class III futures. However, the focus of traders was the fact that block cheese increased and held throughout the week.

BUTTER

For the week, butter increased 14.50 cents with 37 loads traded. Grade A nonfat dry milk increased 7 cents with six loads traded. Price ended the week just shy of the level reached on Feb. 15. Price is heading toward the highest price of the year set on Jan. 21 at $2.9350, 8.50 cents higher than the close Friday. Price has increased five consecutive days and may be due for a price correction soon.

More: Friday Closing Dairy Market Update - Cattle Slaughter Falls

LATEST HAY PRICES:

Forage Fodder

OUTSIDE MARKETS:

The June U.S. Dollar Index is trading up 0.51 at 103.27. June gold is down $0.80 at $1,840.40, July silver is down $0.27 at $21.64 and July copper is down $0.0125. July crude oil gained $0.39, closing at $110.28. The Dow gained 9 points, closing at 31,262, while the NASDAQ declined 34 points, closing at 11,355. July heating oil is down $0.0445, July RBOB gasoline is up $0.0060 and July natural gas is down $0.222.