With the only livestock contract standing tall and reading green being feeder cattle, it's fair to say that this Thursday (as of midday) hasn't been the day of livestock trade. There are several key factors that could turn trade around after the noon hour if traders still have interest 1) Boxed beef cutouts values are mixed, and pork cut values are strong, 2) Cash cattle have yet to trade and asking prices are still higher than last week indicating that feeders plan to stick their heels in the ground, 3) Corn prices are dwindling.
LIVE CATTLE
December live cattle opened Thursday at $108.450 and have since then given up $0.05 to $108.40. As the board shows signs of mixed direction, packer's see this as a perfect opportunity to place some countryside bids. Bids of $161-162 have been placed in Nebraska, and bids of $100 have been established in Texas. It's doubtful that significant trade will take place until more time passes, and potentially not until sometime Friday. Asking prices of $104 to $105 still stand in the South, and $170 in the North.
Midday boxed beef cutouts are mixed with choice down $0.73 ($213.90) and select significantly up $1.10 ($190.93). Thursday's moved boxed beef movement presented 71 loads total (38.31 loads of choice cuts, 15.94 loads of select cuts, 5.42 loads of trim and 11.64 loads of ground beef).
FEEDER CATTLE
Feeder cattle have chosen to take a different route Thursday compared to the other livestock contracts. October feeder cattle opened Thursday morning at $142.50 and have since then gained support and moved upward to $143.20. Depending on how the rest of the contracts trade Thursday afternoon and how cash cattle pan out, will largely influence on whether or not feeder cattle keep their upward momentum.
LEAN HOGS
Thursday's December lean hog contract opened at $71.25 and has since then backed off to $70.55. With stronger cutout prices, the uncertainly of South Korea's African swine flu situation and a weakening corn contract, one would except lean hogs to be on the upward roll, but instead the market retracks.
The projected lean hog index for 9/25/19 is up $0.05 at $54.72, and the actual lean hog price for 9/24/19 was down $0.15 at $54.67. Prices are up again Thursday on the National Direct Morning Hog Report, up $0.66, at a weighted average of $48.82, ranging from $42.00 to $52.00, on 6,121 head sold with a five-day rolling average of $46.02. Pork cutouts totaled at 165.92 loads, with 136.89 loads of pork cuts and 29.04 loads of trim. Pork cutout values came in $1.45 higher at $71.86.
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