GENERAL COMMENTS:
Cattle futures closed in positive territory as positioning ahead of the Cattle on Feed report dominated the day. October live cattle futures were lower for the week while December and later contracts improved, slightly maintaining a sideways range. Feeder cattle futures were not as fortunate with slightly lower prices for the week in all contracts. Cash cattle trade showed little activity with business being pushed to the extreme end of the week. Confirmed cash sales took place at $111. The August Cattle on Feed report was bearish with cattle on feed on Sept. 1 at 106% of a year ago, totaling 11.1 million head. This was at the top of the range of estimates and 0.7% above the average guess. This is the highest Sept. 1 inventory since the series began in 1996. Placements were at 107%, also at the top of the range of estimates and 4% above the average guess. Marketings were 100.0%, totaling 1.98 million head, and at the low end of the estimates, but nearly in line with the average trade guess. Corn futures closed 4.75 cents higher, increasing three consecutive days.
LIVE CATTLE
October live cattle posted lower lows all week while later contracts moved mostly sideways. December closed at the highest price since Feb. 20, while April made a new contract high. Much of the trading activity for the week was centered around the Cattle on Feed report due to cash activity being delayed to the end of the week. Beef cut-outs were $0.28 higher (choice, $204.80) and $0.20 lower (select, $194.70). Total loads were 104 (48 loads of choice cuts, 20 loads of select cuts, 15 loads of trimmings, and 21 loads of ground beef.
MONDAY'S CASH CATTLE CALL:
Cash trade will be nonexistent on Monday with showlists being distributed. Bids will be lowered $2-$3 as Cattle on Feed numbers are higher. Saturday slaughter is expected at 58,000 head.
FEEDER CATTLE:
Futures closed the day in the vicinity of where they traded much of the day. October feeders gained $0.80, closing at $158.07, with November up $0.65 at $157.80. The Commitments of Traders report showed fund traders adding 3,422 long position this week as well as adding 477 short positions. Commercial traders reduced longs by 217 contracts and added 87 short positions.
LEAN HOGS:
October lean hogs declined $0.95 as it took back some of its meteoric rise this week. October through February were $0.70-$0.95 lower, while later contracts were mixed. There is no total count on the number of hogs lost during Hurricane Florence, but the market is holding onto the uptrend of the futures market. Pork cut-out values gained $0.23, settling at $79.18, on 267 loads. DTN projected lean hog index for 9/20 is $59.09, up $1.65.
MONDAY'S CASH HOG CALL:
Steady to $1 higher. Stronger cut-outs and steady demand should keep packers active. Saturday hog slaughter is expected at 183,000 head.
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