Wednesday's trade was disappointing for the cattle complex but yielded a mixed outcome for the lean hog market. Feeders left some cattle trade Wednesday afternoon at slightly lower prices when compared to a week ago. Hog prices closed lower on the National Direct Afternoon Hog Report, down $1.74 with a weighted average of $62.00 on 3,648 head. December corn is up 5 1/4 cents per bushel and December soybean meal is up $7.60. The Dow Jones Industrial Average is down 165.81 points and NASDAQ is down 95.17 points.
LIVE CATTLE:
The live cattle market didn't have the day it was hoping to have, as the board closed lower and cash cattle trade was slightly lower than last week's average. October live cattle closed $0.45 lower at $108.37, December live cattle closed $0.95 lower at $110.27 and February live cattle closed $0.42 lower at $113.22. The cattle contracts struggled both in respect to the live cattle contracts and feeder cattle contracts as traders have stepped away from cattle contracts and are willing to sell their positions without much thought.
Wednesday's cash cattle trade didn't really develop until after the noon hour when Southern cattle sold for $108, $0.50 to $1.00 cheaper than last week, and Northern cattle sold for $169, fully $1.00 lower than last week's trade. Wednesday's slaughter is estimated at 119,000 head, steady with a week ago and 2,000 head more than a year ago.
Boxed beef prices closed lower: choice down $1.30 ($211.14) and select down $0.81 ($199.27) with a movement of 173 loads (103.41 loads of choice, 43.49 loads of select, zero loads of trim and 25.85 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady with the week's trade. Psychology plays a bigger role in the market than we give it credit for, and as packers are printing lower boxed beef prices, feeders are going to have a long road ahead trying to push the market higher by Friday.
FEEDER CATTLE:
Feeder cattle contracts kept with their downward slide as traders left the marketplace high and dry and the live cattle market showed no sign of hope for the afternoon. October feeders closed $0.25 higher at $138.37, November feeders closed $0.50 lower at $136.32 and January feeders closed $0.90 lower at $133.32. Not helping matters, the corn market started to indicate that prices were going to try to creep higher again, and low and behold, as the afternoon progressed, nearby contracts closed $0.02 to $0.05 higher. At OKC Wet Livestock Auction in El Reno, Oklahoma, compared to a week ago, feeder steers sold mostly steady, but feeder heifers sold $6.00 to $8.00 lower. Weaned and light-weight steer calves sold steady to $2.00 higher. Unweaned calves saw a sharply lower market as there were times that the market dipped $10.00 lower. The CME feeder cattle index for Oct. 13: up $0.21, $140.92
LEAN HOGS:
The lean hog market solidified Wednesday's rally as nearby contracts closed higher but deferred contracts weren't as supported. December lean hogs closed $2.27 higher at $68.42, February lean hogs closed $0.97 higher at $71.10 and April lean hogs closed $0.10 higher at $74.72. As the market continues to be supported through strong pork demand domestically, the complex saw support for the futures market as well. Turning to Thursday, the weekly export report will be widely sought after again for hog enthusiasts. Pork cutouts totaled 310.54 loads with 271.37 loads of pork cuts and 39.17 loads of trim. Pork cutout values: up $0.67, $96.57. Wednesday's slaughter is estimated at 489,000 head, steady with a week ago and 2,000 head less than a year ago. The CME lean hog index for Oct. 12: up $0.07, $78.21.
THURSDAY'S CASH HOG CALL: Slightly lower. As packers have supplies secured from earlier purchases, their need to dive into the cash market is minimal.
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