Friday's market led the livestock contracts to a higher close as the market received ample fundamental support, especially in the cash cattle market. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.76 with a weighted average of $124.43 on 6,019 head. December corn is up 3 3/4 cents per bushel and December soybean meal is down $15.60. The Dow Jones Industrial Average is up 76.65 points.
From Friday to Friday Livestock futures scored the following changes: August live cattle up $1.43, October live cattle up $1.65; August feeder cattle up $0.95, September feeders cattle up $1.88; August lean hogs up $0.17, October lean hogs up $1.18; September corn down $0.06, December corn down $0.10.
LIVE CATTLE:The live cattle complex closed the week on a higher tone as the market celebrates the cash cattle market's win. Throughout the week, Southern live cattle traded at mostly $135 to $136, which is steady to $1 higher than last week's weighted averages. Northern dressed deals were marked at mostly $225 to $227, which is steady to $2 higher than last week's weighted average basis Nebraska. Next week's market could trade steady or even lower, which wouldn't be unusual for the time of year it is. However, as packers look to Labor Day and try to gauge the meat needed, they aren't going to be short product to sell. August live cattle closed $0.17 higher at $137.87, October live cattle closed $0.22 higher at $143.87 and December live cattle closed $0.07 higher at $149.97.
Fresh beef imports for the week totaled 22,626 metric tons with Canada, Mexico and New Zealand being the biggest importers. 2022 fresh beef imports YTD total 720,621 metric tons, which is 13% more than a year ago. Processed beef imports totaled 1,717 metric tons, with the year's total processed beef imports totaling 55,745 metrics tons, which is 24% more than a year ago.
Friday's slaughter is estimated at 115,000 head, 9,000 head less than a week ago but steady with a year ago. Saturday's slaughter is projected to be around 39,000 head. This week's slaughter is estimated at 651,000 head, 18,000 head less than a week ago but 7,000 head more than a year ago.
Boxed beef prices closed lower: choice down $2.40 ($263.88) and select down $1.68 ($238.67) with a movement of 191 loads (146.70 loads of choice, 15.95 loads of select, 8.75 loads of trim and 19.23 loads of ground beef). Throughout the week choice cuts average $268.45 (down $1.26 from the previous week) and select cuts averaged $242.75 (up $0.41 from the previous week) with a total movement of 523 loads of cuts, grinds and trim.
MONDAY'S CASH CATTLE CALL: Steady. Trade won't likely develop until later in the week and at that point, feedlots are going to bat for at least steady prices.
FEEDER CATTLE:Even with corn closing $0.03 to $0.08 higher, the feeder cattle market rounded out the week higher as it's got all the fundamental support it needed this past week. With corn prices closing slightly lower than a week ago and with fat cattle able to add $1.00 to $2.00 to the market -- and buyers still buying aggressively in sales throughout the week -- the feeder cattle market wasn't short of support. August feeders closed $0.45 higher $179.52, September feeders closed $0.85 higher at $183.42 and October feeders closed $0.47 higher at $185.95. Oklahoma's Weekly Cattle Summary shared that, throughout the entire state, compared to last week, feeder steers traded mostly steady, but feeder heifers traded $1.00 to $4.00 higher. Steer calves traded $3.00 higher while heifer calves traded $3.00 lower. Slaughter cow and bull demand improved greatly this week and prices of both classes sold $8.00-$12.00 higher. Prices improved despite a somewhat higher number of cows making their move to market. The CME Feeder Cattle Index for Aug. 4: up $1.68, $175.43.
LEAN HOGS:The nearby lean hog contracts were able to keep their contracts elevated through closing while the deferred months closely slightly lower. August lean hogs closed $0.17 higher at $120.82, October lean hogs closed $0.80 higher at $98.40 and December lean hogs closed $0.20 higher at $88.82. With the October contract breaking above the resistance at $98.00, the market will be pressured early next week to either support that move or drop back below the resistance plane. If pork cutouts and slaughter speeds can add support, then the contract may be able to sustain such levels. Friday's pork cutout report closed slightly higher with bellies leading the charge as they gained $6.79, and ribs gained $3.18. Pork cutouts total 278.78 loads with 248.77 loads of pork cuts and 30.01 loads of trim. Pork cutout values: up $0.23, $125.03. Friday's slaughter is estimated at 460,000 head, 23,000 head more than week ago and 11,000 head more than a year ago. Saturday's slaughter is projected to be around 61,000 head. The CME Lean Hog Index for Aug. 3: up $0.67, $121.61.
MONDAY'S CASH HOG CALL: Lower. Given that packers don't really buy on Mondays anymore, the market will likely be lower until they actively buy on Tuesday or Wednesday.
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