GENERAL COMMENTS:
Thursday treated the livestock complex better than the earlier part of the week did, but still the market is trading in a slow and lackadaisical manner as the markets seem exhausted. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $7.88 with a weighted average of $117.62 on 5,314 head. December corn is down 7 1/4 cents per bushel and December soybean meal is down $15.00. The Dow Jones Industrial Average is up 322.55 points.
LIVE CATTLE:
It was a mixed day for the live cattle complex as the day continued to see hesitant trading by traders in the market's nearby contracts while the deferred months set out to do business and closed higher. October live cattle closed $0.12 lower at $143.65, December live cattle closed $0.10 higher at $149.90 and February live cattle closed at $154.67. The cash cattle market saw a little more business develop but it was mainly in the form of clean-up sales as nothing challenged the prices the market established earlier in the week. 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. The week's movement is still thin with less than 55,000 head having been traded. Thursday's slaughter is estimated at 124,000 head -- 2,000 head less than a week ago and 11,000 head more than a year ago.
Thursday's export report shared that beef net sales of 17,000 mt for 2022 were primarily for China (7,100 mt), Japan (3,100 mt) and South Korea (3,100 mt).
Thursday's actual slaughter data shared that for the week ending 8/13/2022 steers averaged 901 pounds (up nine pounds from the previous week, and up three pounds from a year ago). For the same week heifers averaged 822 pounds (up eight pounds from a week ago, and up five pounds from a year ago). This carcass data is somewhat bewildering as a hike in carcass weights doesn't seem logical as processing speeds have been running aggressively, temperatures are still too warm for maximum feeding potential and showlists are extremely current.
Boxed beef prices closed mixed: choice up $0.71 ($263.54) and select down $0.08 ($237.54) with a movement of 124 loads (77.74 loads of choice, 19.97 loads of select, 8.28 loads of trim and 17.99 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. It's likely that the bulk of this week's business is done with as packers are showing the market every little attention.
FEEDER CATTLE:
The feeder cattle complex was refreshed to see corn prices trend $0.07 to $0.08 lower into the day's close which consequently allowed for the feeder cattle complex to rally through closing. September feeders closed $1.22 higher at $184.25, October feeders closed $1.07 higher at $185.52 and November feeders closed $1.02 higher at $187.07. With the corn market easing some of the pressure it imploded on the market earlier this week, feeders were again able to advance their position and will likely set out to regain all of what the market lost earlier in the week as feeder cattle demand is still strong. At Winter Livestock Auction in Pratt, Kansas at their midsession point prices for feeder steers weighing 700 to 900 pounds were called $2.00 to $4.00 higher than last week and feeder heifers weighing 600 to 900 pounds sold $3.00 to $6.00 higher. Feeder cattle weighing over 600 pounds made up 91% of the sale. The CME feeder cattle index 8/24/2022: up $0.95, $181.00.
LEAN HOGS:
The lean hog market waltzed through Thursday's market seeming unphased by the market's lousy export report as the complex trotted through the day with fully higher prices. October lean hogs closed $0.72 higher at $91.10, December lean hogs closed $0.45 higher at $82.62 and February lean hogs closed $0.17 higher at $85.92. Pork cutout values closed lower again but the report's lowest performing cut for the day was the loin, which fell $6.67 from Wednesday's end. Belly prices saw a mild $0.98 addition after their nose-dive earlier this week. Slaughter speeds are running aggressively which likely means that pork cutout values could come under pressure again if domestic consumer support doesn't see much improvement. Pork cutouts totaled 254.18 loads with 222.69 loads of pork cuts and 31.50 loads of trim. Pork cutout values: down $0.33, $102.66. Thursday's slaughter is estimated at 476,000 head - 2,000 head more than a week ago and 3,000 head more than a year ago. The CME lean hog index 8/23/2022: down $1.18, $118.00.
Thursday's export report shared that pork net sales of 6,700 mt for 2022 were reported for Canada (2,400 mt), Mexico (2,400 mt) and Japan (900 mt).
FRIDAY'S CASH HOG CALL: Lower. With packers seeing little interest in the export market for U.S. pork and teetering demand domestically.
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