GENERAL COMMENTS:
Doggish, sluggish pre-three-day-weekend tones have encapsulated the livestock complex and are leading most of the contracts lower into Wednesday afternoon. Both the cash cattle and cash hog markets have yet to really be traded this week, which is extremely unusual for the hog complex. December corn is down 9 1/4 cents per bushel and December soybean meal is down $5.00. The Dow Jones Industrial Average is down 50.63 points.
LIVE CATTLE:
The live cattle complex would love to trade higher like the market was doing just a mere two weeks ago. But with a lack of packer support in the week's cash cattle market and when looking lower boxed beef prices dead in the eye -- lower tones have worked their way into the market. October live cattle are down $1.20 at $142.62, December live cattle are down $1.12 at $148.67 and February live cattle are down $0.87 at $153.47. The cash cattle market has yet to see any bids develop from packers, which could indicate packers are opting to cold-shoulder the market this week in hopes they'll be able to work its prices lower yet again. Asking prices of $144 are noted in the South, and the North is still unclear about their asking prices.
The Fed Cattle Exchange Auction held Wednesday reported seven lots (six lots in Texas and one lot in California), totaling 1,204 head of cattle, none of which sold. Opening prices were at $139, high bids were at $139 to $140.50, but reserve prices were at $141 to $142.
Boxed beef prices are lower: choice down $1.51 ($258.28) and select sown $1.26 ($238.42) with a movement of 106 loads (61.88 loads of choice, 21.87 loads of select, 12.62 loads of trim and 9.26 loads of ground beef).
FEEDER CATTLE:
With the corn complex trending $0.08 to $0.09 lower into the afternoon, the nearby feeder cattle contracts are taking advantage of the corn market's weakness. But the rest of the market's contracts are trending lower as the livestock complex lacks substantial trader interest thus far throughout the day. September feeders are up $0.52 at $182.70, October feeders are up $0.35 at $183.62 and November feeders are up $0.05 at $184.75. If the cash cattle market could trade higher the deferred feeder cattle contracts would stand a better chance at scaling higher too; but at this point the cash cattle market has yet to see any interest this week.
LEAN HOGS:
It's a rather peculiar day for the lean hog complex as the market is working its way into Wednesday afternoon and still no significant interest has been shown to the cash hog market. The futures complex is trading modestly lower, as it is also realizing the lack on packer interest in today's marketplace. October lean hogs are down $1.80 at $91.80, December lean hogs are down $1.37 at $84.12 and February lean hogs are down $0.95 at $87.67. Midday pork cutout values are up, which could mean anything by the day's end. But now the market's biggest question is: Are packers going to cut processing speeds or is this a pre-three-day-weekend hiccup?
The projected CME Lean Hog Index for 8/30/2022 is down $1.74 at $107.62, and the actual index for 8/29/2022 is down $1.90 at $109.36. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.27 with a weighted average of $105.11, ranging from $96.00 to $112.00 on 6,148 head and a five-day rolling average of $107.32. Pork cutouts total 157.51 loads with 136.91 loads of pork cuts and 20.60 loads of trim. Pork cutout values: up $2.37, $104.53.
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