GENERAL COMMENTS:
The livestock complex is off to a brisk start to the new week as the market sees ample interest from traders and hopes to see fundamental support back the technical move. The cattle complex stands a strong chance at rallying if corn doesn't pose too big of a treat, but the lean hog complex faces more pressure as packers are running with extremely thin margins in the pork sector. December corn is up 7 1/4 cents per bushel and December soybean meal is down $9.50. The Dow Jones Industrial Average is down 94.96 points.
LIVE CATTLE:
The live cattle complex is powering into Tuesday's afternoon as the market builds off the momentum that was established late last week. October live cattle are up $0.50 at $145.05, December live cattle are up $0.60 at $150.85 and February live cattle are up $0.62 at $155.00. The big question that the market possesses this week is: What will cash cattle demand be? Over the last two weeks, cash cattle demand has been lackadaisical as not very head traded and prices were lower. Given that packers and feedlots both know that thin supplies wait for them later into the fall/winter and undoubtedly into 2023, feedlots are going to become stronger in the market and in their ability to demand higher prices. Early asking prices in the South are noted at $144, and asking prices in the North are still unknown, but showlists in all major feeding regions are smaller.
Boxed beef prices are higher: choice up $0.98 ($260.40) and select up $3.23 ($241.81) with a movement of 59 loads (20.46 loads of choice, 15.34 loads of select, 12.94 loads of trim and 10.49 loads of ground beef).
FEEDER CATTLE:
The most actively traded October feeder cattle contracts is charging into Tuesday's trade full steam ahead as the market is taking full advantage of trader's strong support amid the minute rally in the corn complex. September feeders are up $1.10 at $184.97, October feeders are up $1.75 at $186.70 and November feeders are up $1.42 at $187.67. It's helping feeders cause that the live cattle market is rallying too, which is what feeder cattle buyers are obsessively watching as they're looking for upside potential on the backside of buying these feeder calves. With February 2023 live cattle printing at $155.05 and April 2023 live cattle printing at $158.60, buyers are anxious to work the markets this week and see what they can get bought.
LEAN HOGS:
The lean hog market is in a tough spot as the market has worked itself lower since the middle of August as packer margins have cut packers' ability to keep actively pursuing the cash hog market. The export market hasn't been lucrative as of late for the U.S. hog market as foreign countries are able to buy pork cheaper elsewhere, which has put even more pressure on our domestic market as U.S. consumer demand is deeply needed to keep prices elevated. Now that the Labor Day has passed, packers will be monitoring pork prices as they have no wiggle room in their current margin to chase cash prices if demand is null. October lean hogs are up $0.57 at $90.60, December lean hogs are up $0.42 at $83.12 and February lean hogs are up $0.12 at $86.82.
The projected lean hog index for Sept. 2 is down $1.48 at $103.26, and the actual index for Sept. 1 is down $1.52 at $104.74. Hog prices are unavailable on the Daily Direct Morning Hog Report because of packer submission issues. Pork cutouts total 180.66 loads with 161.36 loads of pork cuts and 19.30 loads of trim. Pork cutout values: up $3.78, $106.03.
No comments:
Post a Comment