Friday Market Watch - Higher Tones Creep into the Livestock Complex; KC Wheat Jumps Higher on USDA Estimates, New-Crop Soybeans Tumble

LIVESTOCK:

By Friday's end, the livestock complex had turned mostly higher allowing all three of the contracts to see higher prices ahead of the weekend's arrival. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.95 with a weighted average of $74.35 on 3,159 head. 

The Friday to Friday livestock futures scored the following changes: June live cattle up $2.47, August live cattle up $2.95; May feeder cattle up $2.95, August feeder cattle up $7.55; June lean hogs up $0.33, July lean hogs down $0.10; May corn down $0.20, July corn down $0.10.

Friday's slaughter is estimated at 124,000 head - 7,000 head more than a week ago and 4,000 head more than a year ago. Saturday's slaughter is projected to be around 16,000 head. This week's slaughter is estimated at 646,000 head -- 23,000 head more than a week ago and 5,000 head less than a year ago.

Friday's WASDE Report was rather favorable to the cattle and beef markets again this month. Beef production for 2023 was raised by 146 million pounds as both fed cattle and non-fed cattle slaughter speeds have been more aggressive than originally assumed. Thankfully this isn't expected to hinder quarterly steer prices, however. For the remaining three quarters of the year, every single quarter saw a higher anticipated price point than what April's WASDE report shared. The second quarter is now expected to average $172 (up $3.00), the third quarter is now expected to average $164 (up $2.00) and the fourth quarter is expected to average $169 (up $2.00). 2023 beef imports were increased by one million pounds, but 2023 beef exports rose by 89 million pounds.

Boxed beef prices closed mixed: choice down $1.11 ($304.61) and select up $0.10 ($284.68) with a movement of 115 loads (74.65 loads of choice, 15.85 loads of select, 14.66 loads of trim and 9.90 loads of ground beef).

More: Friday Closing Livestock Market Update - Higher Tones Creep into the Complex 

GRAINS:

July corn closed up 4 cents and December corn was down 5 cents. July soybeans closed down 15 1/2 cents and November soybeans were down 24 1/4 cents. July KC wheat closed up 35 1/2 cents, July Chicago wheat was up 7 3/4 cents and September Minneapolis wheat was up 8 1/4 cents.

For the week:

July corn closed down 10 1/4 cents and December corn was down 26 cents. July soybeans closed down 46 1/2 cents and November soybeans were down 56 1/4 cents. July KC wheat closed up 44 cents, July Chicago wheat was down 25 1/4 cents and September Minneapolis wheat was up 8 1/2 cents.

DAIRY:

USDA is not very optimistic about milk prices this year or for the following year. They estimate the average Class III price at $17.75, a decline of $0.50 from their April estimate according to the World Agricultural Supply and Demand report released today. The first estimate of the average Class III price for 2024 is $17.50. The Class IV estimate was increased $0.20 to $18.30 this year with the initial estimate for next year at $17.35. The All-milk price estimate was reduced $0.15 to an average of $20.50 with an initial estimate for 2024 of $19.90. Estimated milk production this year was reduced 100 million pounds to $228.6 billion pounds. This would be 2.1 billion pounds above the production level of 2022. The initial production estimate for 2023 was released at 430.8 billion pounds.

More: Friday Closing Dairy Market Update - USDA Reduces Estimated Milk Production

FORAGE: This Week's Hay Markets (Forage Fodder Blog)

OUTSIDE MARKETS:

The June U.S. Dollar Index is up 0.66 at 102.53. June crude oil is down $0.79 per barrel at $70.08. The Dow Jones Industrial Average is down 9 points at 33,301 and NASDAQ is down 44 points at 12,285. June gold is down $0.60 at $2,019.90, July silver is down $0.24 at $24.18 and July copper is up $0.0125. June ultra-low sulfur diesel is down $0.0441, June RBOB gasoline is down $0.0288 and June natural gas is up $0.077.