General Comments
Cattle contracts are posting staggering losses taking an abrupt turn from Tuesday's trade. The lean hog complex has been able to maintain support and continues to push the nearby contracts higher as they are rallying the most support. Cash cattle trade remains as mostly a standstill as the morning's online auction experienced technically difficulties and packers have yet to really approach the countryside with buying acquisition.
December corn is down 1 1/4 cents per bushel and December soybean meal is up $4.80. The Dow Jones Industrial Average is up 531.58 points and NASDAQ is up 303.75 points.
LIVE CATTLE
The live cattle market is being pressured as the day continues while cash cattle trade continues to be elusive and the board heads lower. October live cattle are down $1.25 at $104.50, December live cattle are down $1.17 at $108.97 and February live cattle are down $0.72 at $113.25. Without a strong consensus on why the market should trade higher given that packers have a large supply of cattle already committed, that boxed beef prices are sliding lower daily and that kill levels continue to be lower than hoped for -- the market keeps turning to its lower trading option. There were difficulties Wednesday morning with the FCE which hindered its ability to sell cattle. The countryside has yet to see action as packers remain extremely quiet. Asking prices in the North have yet to be determined and the South has cattle priced at $105.
Boxed beef prices are lower: choice down $0.68 ($224.14-) and select down $0.48 ($207.98) with a movement of 97 loads (59.62 loads of choice, 21.51 loads of select, 6.99 loads of trim and 9.24 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts are enduring losses as the entire complex falls lower with losses greater than a $1.00 in most cases. As cash cattle trade remains skeptical and boxed beef prices slide lower, the feeder cattle market is seeing the ground crumble on which it stands. If there is a hope to be had through this week's sharp downward turn, it would be that the market does its lower trading now and stabilized before the fall run. September feeder cattle are down $0.87 at $138.07, October feeders are down $1.52 at $138.32 and November feeder cattle are down $1.80 at $138.92.
LEAN HOGS
Dodging the downward pressure that's rising in the cattle market, the lean hog contracts scale higher into Wednesday's afternoon. October lean hogs are up $0.87 at $60.77, December lean hogs are up $0.67 at $59.35 and February lean hogs are up $0.62 at $64.25. With nearby contracts still being discounted to the deferred contracts price, producers are praying that the nearby momentum continues. Again, the pork cutout values see a healthy midday rise as consumers are continuing to seek out pork protein in the meat counters.
The projected two-day lean hog index for 9/4/2020 is up $1.90 at $60.53, while the actual index for 9/3/2020 is up $0.51 at $58.64. Hog prices are higher on the National Direct Morning Hog Report, up $0.40 with a weighted average of $45.88, ranging from $40.00 to $47.00 on 3,836 head and a five-day rolling average of $45.76. Pork cutouts total 208.11 loads with 180.06 loads of pork cuts and 28.05 loads of trim. Pork cutout values: up $2.87, $83.78.
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