GENERAL COMMENTS:
With the corn market pushing a $0.10 to $0.11 rally heading into Friday's afternoon, the cattle contracts are again rocked back on their heels as the cattle contracts can't seem to catch a break this week. The lean hog complex is trending mixed into Friday's afternoon as the nearby contracts are still trading hesitantly but the deferred months are back to rallying. December corn is up 10 1/4 cents per bushel and December soybean meal is up $11.40. The Dow Jones Industrial Average is down 648.20 points.
LIVE CATTLE:
It's been a doggish week for the live cattle complex so, if you're an adrenaline junky, the live cattle market isn't your bag this week. From technical downward pressure to higher carcass weights and a weaker cash market, cattle producers are praying that next week's shortened holiday-kill schedule passes by quickly so that the market can get back to a normal tone and hopefully snap back to focusing on the market's upward potential. Nevertheless, the live cattle contracts are trending fully lower into Friday's afternoon and there's little hope that the market drums up enough support to boost its prices ahead of closing. The cash cattle market hasn't seen any more business develop and it's looking like the week's trade is essentially done with. Thus far throughout the week, Southern live cattle have traded for mostly $142 which is steady with last week's weighted averages, and Northern dressed cattle have traded for $232 to $233, which is $1.00 to $2.00 lower than Nebraska's weighted average last week.
Boxed beef prices are mixed: choice down $0.19 ($263.35) and select up $1.04 ($238.58) with a movement of 71 loads (47.73 loads of choice, 7.29 loads of select, 10.95 loads of trim and 4.94 loads of ground beef).
FEEDER CATTLE:
With the corn complex gaining more support ahead of the week's end, the feeder cattle complex is feeling puny as it trades lower yet again this week. The corn complex is pushing a $0.10 to $0.11 rally, which burns the feeder cattle market given that the complex saw aggressive gains earlier in the week. September feeders are down $1.87 at $182.37, October feeders are down $1.72 at $183.80 and November feeders are down $1.37 at $185.70. If the market can close above the $183.75 support plane, that's somewhat positive as the market is respecting the nearby support level, but if the market closes below that point than next week's market could be under more pressure.
LEAN HOGS:
The lean hog complex is trending mixed into Friday's afternoon as the spot and nearby contracts face a little bit of push back while the deferred contracts trade mostly in a supported manner. The big question that the lean hog market is going to be faced with in the upcoming weeks and months is that of consumer demand and product movement. If packers end up having a tough time moving product, pork cutout prices could become pressured, but if consumers show interest in pork cuts, then the market stands a chance at trading steady. Export support has been hairy and it's likely to stay that way through the remainder of 2022, which makes domestic demand even more important. October lean hogs are down $0.30 at $90.80, December lean hogs are up $0.20 at $82.82 and February lean hogs are up $0.37 at $86.30.
The projected lean hog index for Aug. 25 is down $2.73 at $113.32, and the actual index for Aug. 24 is down $1.95 at $116.05. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $0.88 with a weighted average of $110.31, ranging from $100.00 to $127.00 on 3,618 head and a five-day rolling average of $121.78. Pork cutouts total 226.25 loads with 203.44 loads of pork cuts and 22.81 loads of trim. Pork cutout values: down $3.00, $99.66.
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