GENERAL COMMENTS:
It was a mixed day for the livestock complex as feeder cattle were the only livestock market able to close higher in the futures complex. The lean hog market continues to face a lack of interest from packers and the live cattle market saw hit-and-miss support. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.91 with a weighted average of $94.98 on 6,503 head. December corn is down 2 1/2 cents per bushel and December soybean meal is down $5.60. The Dow Jones Industrial Average is up 193.24 points.
LIVE CATTLE:
It was a mixed day for the live cattle complex as cash cattle sold steady to $2.50 lower, the futures market traded mixed, boxed beef prices dipped lower for the day, but Thursday's actual slaughter data had impressive news to share. Nevertheless, the cattle market is trudging through the beginning of September knowing that the sooner the month can come to an end, the market will be that much closer to thinner market-ready fed cattle supplies and likely better beef demand. October live cattle closed $0.12 higher at $144.37, December live cattle closed $0.42 lower at $149.65 and February live cattle closed $0.22 lower at $154.27. A light movement of cattle traded in the North with dressed cattle selling for mostly $226 which is $2.50 lower than last week. Southern live cattle traded for mostly $141 which is about steady with last week's market. Thursday's slaughter is estimated at 127,000 head, 2,000 head more than a week ago and 6,000 head more than a year ago.
Thursday's actual slaughter data shared that, for the week ending Aug. 27, the market processed 677,878 head of cattle, which is the largest slaughter thus far for 2022. For the week steers averaged 904 pounds, which was steady with the week before but was 3 pounds heavier than a year ago, and heifers averaged 821 pounds, which was 1 pound lighter than the previous week but was steady with a year ago.
Boxed beef prices closed lower: choice down $3.33 ($258.01) and select down $1.47 ($236.04) with a movement of 189 loads (133.20 loads of choice, 31.86 loads of select, 8.39 loads of trim and 15.30 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. Given that cattle have already traded in both regions, it's likely that prices hold steady through the week's end.
FEEDER CATTLE:
After closing lower Wednesday afternoon, the feeder cattle market was able to rebound slightly throughout Thursday's market as the corn complex closed $0.02 lower and no immediate technical pressures overpowered the market. September feeders closed $0.30 higher at $182.32, October feeders closed $0.45 at $184.40 and November feeders closed $0.30 higher at $185.75. Sales are beginning to see more spring born calves at their auctions as some producers are already shipping calves for the fall run. Auction receipts will likely only continue to get bigger until the fall run is over with, and if the corn complex can trade steady to somewhat lower and cash cattle begin to trade higher again, then upside potential in the feeder cattle marekt is ripe. At Torrington Livestock Feeder Cattle Auction in Torrington, Wyoming, compared to past week, feeder steers and heifers traded $3.00 to $7.00 stronger. The market was active with many lots of reputation cattle selling. No trend of calves right off the cow was noted but there was high demand for calves with both spring and fall shots. Feeder cattle supply over 600 pounds was 71%. The CME Feeder Cattle Index for Sept. 7: up $1.17, $180.31.
LEAN HOGS:
The lean hog complex is continuing to chop sideways as the market desperately longs for support. With packers having thin margins to work with, their interest in the cash hog market has been limited and will likely continue to be limited until their have more funds to operate with. Demand will continue to be one of the biggest driving factors of the lean hog market as both packers and producers need and want to see robust demand from our domestic consumers. October lean hogs closed $1.05 higher at $92.12, December lean hogs closed $0.92 lower at $82.67 and February lean hogs closed $0.62 lower at $86.80. Pork cutouts totaled 284.70 loads with 252.22 loads of pork cuts and 32.48 loads of trim. Pork cutout values: down $0.71, $102.44. Thursday's slaughter is estimated at 478,000 head, 2,000 head less than a week ago and 3,000 head less than a year ago. The CME Lean Hog Index for Sept. 6: down $1.78, $101.48.
FRIDAY'S CASH HOG CALL: Lower. Given that packers have shown the market little to no interest throughout the week, it's very unlikely that they change their tone come Friday.
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