Date: May 31st, 2022
All livestock futures finished under mild pressure heading into the 3-day holiday weekend, but still held gains week over week. Cattle futures still holding the lower trend with feeders into new lows to begin last week. Lean hogs continue to hold a higher trend over the past couple weeks. Weekly pork export sales and shipments were bullish and prices holding firm. Negotiated cash fed cattle was steady to $2 lower than the week previous with live trade in the South from $136 to $137 and dressed trade in the North ranging from $223 to $227.
For the week, Friday May 20th through Friday May 27th, June Live Cattle +$.60, August +$.85, May Feeder Cattle +$1.17, August +$2.40, June Lean Hogs +$1.52, July +$2.72. Boxed Beef, Choice +$3.25 @ $265.42, Select +$3.48 @ $246.50, Pork Carcass Cutout -$.95 @ $106.16.
Oklahoma Weekly Cattle Auction Summary
Livestock Weighted Average Report for 5/22/2022 – 5/28/2022
Current Week: 25,094 Last Report 5/16/22: 34,632 Last Year: 31,141
Compared to last week: Feeder steers 1.00-3.00 lower. Feeder heifers 1.00-3.00 higher. Steer calves 2.00-8.00 lower. Heifer calves mostly steady. Demand moderate for most all classes.
Cattle slaughter from Friday estimated at 120,000 head and Saturday 25,000 head. For the week, 644,000 head, down 36,000 from the week previous but up 14,000 from last year. Beef production estimated at 529.4 million pounds with the year to date difference remaining +0.9% vs. last year and year to date slaughter +0.7%.
Hog slaughter from Friday estimated at 456,000 head and Saturday 11,000 head. For the week, 2,351,000 head, down 63,000 compared to the week previous and down 27,000 compared to a year ago. Pork production last week estimated at 513.2 million pounds with year to date pork production at -4.8% compared to a year ago and hog slaughter -4.3%.
Boxed beef cutout values on Friday higher on moderate demand with 106 loads sold.
Choice Cutout__265.42 +1.45
Select Cutout__246.50 +2.07
CME Feeder Cattle Index__154 .72 +.92
CME Lean Hog Index__104.93 +.53
Pork Carcass Cutout __106.16 -1.97
National Wtd Avg Cash Carcass Base__109.68 -1.67, 4,736 head
June live cattle still holding a lower trend and discount to cash with support right around $131, the May low just above and March low just below, nearby resistance at $134. August feeders now the front month holding a lower trend now for more than 3 months. The contract low is at $162.80, hit last Monday, with nearby support at $166 and resistance at $170.25. June lean hogs holding a 3-week long higher trend with support at $105 and resistance at $111.60.
Soybeans the leader in the grains most of last week, with the nearby July contract into new contract highs and the new crop November within pennies of testing contract highs. Wheat showed some strength on Friday, but both Chicago and KC holding lower trends as MPLS wheat continues to be supported by planting delays in the North. US weather mixed heading into this week with a wet forecast again for the North. This afternoon’s planting progress will shed some light on how much ND acreage could be switched away from corn to alternative crops or possible prevent plant claims. Beyond that, as we head into June, looks to be a good mix of sun and showers over most major growing areas.
For the week, Friday May 20th through Friday May 27th, July Corn -$.01 ½, December -$.02, July Soybeans +$.27, November +$.22 ¼, July KC Wheat -$.17 ½, September -$.15 ½, July Chicago Wheat -$.11 ¼, September -$.08 ¼, July MPLS Wheat +$.25 ¾, September +$.26, July Soybean Meal +$2.40, October +$4.50.
Wheat back under heavy pressure in the overnight. Russia stating they will move forward in allowing Ukraine to export grain again through the Black Sea, yet the fighting continues in Eastern Ukraine as Russia continues to advance. It is the hot topic this morning and many wondering if that means Ukraine exports or Russian exports of Ukraine’s grain through ports they now control. Supposedly Russia will agree only if Ukraine were to demine the harbors and the West lifts financial sanctions. They promise they won’t attack by sea once the mines are gone.
Corn under mild pressure overnight as well but soybeans continue to climb higher. July and now the new crop November contract into new contract highs. Equities pointing lower with energies and the US$ higher. Corn finished the overnight 4 to 6 lower, soybeans 1 to 5 higher and wheat 21 to 30 lower.
USDA will update crop progress later this afternoon with the expectations to see around 2/3 of soybean crop planted and over 85% of the corn crop planted. Still well behind the average pace for each, and only 1 other year in the past 20 has corn planting been below 83% by the end of May. Spring wheat planting expected to be near 70% complete.
Heavy rains expected this week from Central OK through Eastern KS and into MO with scattered showers expected across most of the Corn Belt. The 6-10 day outlook showing below normal temps in North with above normal temps across the southern half of the U.S. and above normal moisture for the most of the country.
July corn holding a lower trend over this past month with a new recent low last week at $7.55 and resistance up at $7.80. The December contract hit a new contract high on May 16th at $7.66 ¼ but holding a lower trend since and honestly choppy trade over the past 2 months with support from $7.07 to $7.00. July soybeans again a new contract high overnight at $17.49 ¼ with support around $16.70. The November contract also a new contract high overnight at $15.60 ½ with support around $15.00. July KC Wheat a new all-time high for a July contract back on May 17th at $13.79 ¼ all the way down to $11.92 support last week with nearby resistance at $12.91 ½. July Chicago wheat a new contract high also on May 17th at $12.84 down to support at $11.15 with nearby resistance at $11.70. July MPLS wheat a new contact high May 17th at $14.12 ¾, support at $12.40 and nearby resistance at $13.20. July Soybean Meal with support around $420 and resistance at $440.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com matt@loewenassociates.com
785-537-3336
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