GENERAL COMMENTS:
Starting off the week with optimism and ambition, the livestock complex closed fully higher through all three sectors. Seeming to want to get to business following the three-day weekend, traders were willing to move the market higher and did so effortlessly throughout Tuesday's trade. Prices closed lower on the National Direct Afternoon Hog Report, down $0.37 with a weighted average of $45.56 on 3,657 head. December corn is up 3 3/4 cents per bushel and December soybean meal is down $2.60. The Dow Jones Industrial Average is down 632.42 points and NASDAQ is down 465.45 points.
LIVE CATTLE:
The live cattle market closed with gains over $1.00 stronger for most of the complex, which leaves feedlots hoping that the upward progression continues despite the worrisome nature of the uncertain marketplace. October live cattle closed $1.32 higher at $105.77, December live cattle closed $1.65 higher at $110.12 and February live cattle closed $1.52 higher at $113.97. After last week's light cash cattle trade, the market is split in two starkly different opinions on how this week's trade will pan out. Hopefuls are praying that packers will be somewhat more aggressive this week after buying fewer cattle last week than what they have recently grown accustomed to. But there's also a great possibility that -- with packers sitting on a lofty supply of cattle and boxed beef prices scaling lower -- this week's fate will simply be lower. Monday's slaughter is estimated at 3,000 head. Tuesday's slaughter is estimated at 118,000 head, 2,000 head less than a week ago and steady with a year ago.
Boxed beef prices closed lower: choice down $1.03 ($224.82) and select down $0.84 ($208.46) with a movement of 130 loads (73.13 loads of choice, 27.83 loads of select, 4.92 loads of trim and 24.28 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Lower. Unfortunately, with the vast supply that packers have been able to accumulate over the last two months, their desire to pay more for cattle while boxed beef prices weaken, will likely be slim.
FEEDER CATTLE:
The feeder cattle complex was able to attract some of the ambitious traders and move the nearby contracts over $1.00 stronger. September feeders closed $1.30 higher at $138.95, October feeders closed $1.35 higher at $139.85 and November feeders closed $1.20 higher at $140.72. Although some spring born calves are starting to trickle into sale barns sporadically, the market won't get a good feel for how feeder cattle are going to sell this upcoming fall until the first or second week of October. Drought could push some cattlemen to sell before that, but most hope to give the market some time to rebound from the recent downward trend before they go to market. The CME feeder cattle index 9/4/2020: down $1.15, $139.05.
LEAN HOGS:
Closing out Tuesday afternoon, the lean hog complex saw a mostly higher close, though some deferred contracts slipped slightly lower into the day's end. October lean hogs closed $0.07 higher at $59.90, December lean hogs closed $0.42 higher at $58.67 and February lean hogs closed $0.60 higher at $63.62. Supported by a slightly higher cutout value, the market was able to keep traders interested in nearby contracts, which helped the charts trade is a steady motion from Friday's close. Pork cutouts totaled 380.04 loads with 351.70 loads of pork cuts and 28.33 loads of trim. Pork cutout values: up $0.35, $80.91. Monday's slaughter is estimated at 6,000 head. Tuesday's slaughter is estimated at 474,000 head, 1,000 head less than a week ago and 18,000 head less than a year ago. The CME lean hog index 9/3/2020: up $0.51, $58.64.
WEDNESDAY'S CASH HOG CALL: Lower. Turning the market's attention to post Labor Day ambition, packers may lack scale back their aggression as buying after the holiday weekend usually weakens.
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