GENERAL COMMENTS:
With the corn complex trending lower into Tuesday's afternoon, the livestock complex is running aggressively into the second half of the day. The cash cattle market hasn't seen any interest develop yet but given that a three-day weekend lingers ahead of everyone, it's likely that they'll set out to get their business done early this week. December corn is down 10 1/2 cents per bushel and December soybean meal is down $7.00. The Dow Jones Industrial Average is down 284.59 points.
LIVE CATTLE:
The live cattle market is rallying into Tuesday's afternoon as the complex can finally breathe again now that corn prices are trending lower. The cash cattle market hasn't seen any interest develop yet this week and guessing what tactic packers are going to use in approaching this week's market is a gamble. Packers could opt to sit back and work the cash cattle market $1.00 to $2.00 lower again this week, which would help drive cash cattle prices lower for the time being, but it will hurt their inventory. Packers could also show modest interest in this week's cash cattle market and try to hold the market mostly steady but largely focus on buying as many cattle as possible to alleviate their needs of supporting the market in the weeks to come. Either way, feedlots are going to have a tough time marketing cattle this week as packers use the nearing Labor Day holiday and the lighter kill schedule that it will possess to their advantage. October live cattle are up $1.12 at $144.02, December live cattle are up $1.00 at $149.92 and February live cattle are up $0.85 at $154.50. Asking prices are noted in the South at $144 but are still illusive in the North.
Boxed beef prices are mixed: choice up $0.10 ($263.14) and select down $1.18 ($241.57) with a movement of 80 loads (42.57 loads of choice, 20.83 loads of select, 8.87 loads of trim and 7.60 loads of ground beef).
FEEDER CATTLE:
After taking a royal beating in Monday's market, the feeder cattle complex is back to rallying as the corn complex is posting a $0.09 to $0.10 regression as the market heads into Tuesday afternoon. Unfortunately, the cattle complex is still subject to more pressure if the corn market possess much more upside even though supplies are thin compared to a year ago and strong fundamental factors are still pointing to higher prices later this year and well into 2023. September feeder cattle are up $2.15 at $182.07, October feeder cattle are up $2.05 at $183.12 and November feeders are up $1.70 at $184.62.
LEAN HOGS:
The lean hog market is trending higher despite news developing that China has announced that they won't be accepting pork from the Tyson pork plant in Logansport, Indiana, effective Aug. 29. Given that China has only banned product from this one plant and that their sow inventory is lower than a year ago, it's unlikely that this will gravely affect hog exports. October lean hogs are up $0.87 at $93.12, December lean hogs are up $0.30 at $84.92 and February lean hogs are up $0.20 at $88.12. Keeping a close eye on both pork cutout values, and slaughter speeds will be incredibly important in helping gauge where the lean hog futures market could go next.
The projected lean hog index for Aug. 29 is down $1.90 at $109.36 and the actual index for Aug. 26 is down $2.06 at $111.26. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.33 with a weighted average of $106.38, ranging from $100.00 to $120.00 on 6,386 head and a five-day rolling average of $117.71. Pork cutouts total 203.20 loads with 187.41 loads of pork cuts and 15.79 loads of trim. Pork cutout values: up $0.26, $102.83.
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