GENERAL COMMENTS:
It's weeks like this that I wished so badly that livestock market just worried about livestock things. Instead, our markets have been spun into a frantic frenzy as inflation is worse off than originally assumed, and the likelihood that unions strike grows stronger. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.15 with a weighted average of $98.26 on 16,789 head. December corn is down 10 1/2 cents per bushel and December soybean meal is steady. The Dow Jones Industrial Average is up 30.12 points.
**Wednesday afternoon the USDA Foreign Agriculture Service shared that export data will resume Thursday and they will release the last four weeks' data.
LIVE CATTLE:
It was a tough day for the live cattle market as traders pumped the brakes on the futures market until they could see what cash prices were going to do. There was a thin movement of cattle that traded in the North from $224 to $230, but it was on such a thin movement that no trend was established for the week. Southern feedlots remained firm in their $143 to $145 asking price and passed on all the bids that were offered throughout the day. Come Thursday, packers are going to have to decide if it's more important to keep the cash market depressed this week or if its more important to get some cattle bought in fear of becoming short bought. October live cattle closed $0.45 lower at $144.35, December live cattle closed $0.40 lower at $150.05 and February live cattle closed $0.25 lower at $154.47.
Wednesday's slaughter is estimated at 126,000 head, 2,000 head less than a week ago and 7,000 head more than a year ago.
Boxed beef prices closed lower: choice down $3.19 ($253.47) and select down $3.47 ($230.11) with a movement of 210 loads (130.78 loads of choice, 48.39 loads of select, 13.72 loads of trim and 17.14 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Higher. Given that feedlots have gone toe to toe with packers this long in the week, it's likely that they're willing to roll cattle over to next week's trade if need be.
FEEDER CATTLE:
With most of the nearby corn contracts closing $0.10 lower, the feeder cattle complex rallied into the day's afternoon as the market set out early to regain lost ground. September feeders closed $0.52 higher at $179.97, October feeders closed $0.90 higher at $181.42 and November feeders closed $0.62 higher at $182.97. If Thursday presents the market with higher cash cattle trade and weaker corn prices, then the market stands a fair chance at rallying modestly. Given the uncertainty that's looming over the entire marketplace, with the possibility that railroad union workers go on strike, volatility is laced throughout this week's marketplace and can change the market's trajectory in an instant. At OKC West Livestock Auction in El Reno, Oklahoma, at their midsession point, and when compared to last week, both steer and heifer calves sold mostly $6.00 to $8.00 lower. Feeder steers and heifers also sold $6.00 to $8.00 lower. Demand was light for fresh calves weaned straight off the cow, but demand was moderate to good for those that were long weaned. Feeder cattle supply over 600 pounds was 53%. The CME Feeder Cattle Index for Sept. 13: down $0.09, $179.97.
LEAN HOGS:
The lean hog market played out as Wednesday's end drew near. The nearby contracts fell slightly lower while the deferred contracts were able to close roughly steady. It was good for the market to see that packers are indeed still going to have to buy some hogs in the cash market as just over 16,000 head sold by Wednesday afternoon. Meanwhile, packers were pleased to see supportive findings in the day's afternoon pork cutout report as the carcass price jumped over $2.00 higher which was mostly fueled by the $6.02 jump in bellies. Pork cutouts total 268.88 loads with 243.07 loads of pork cuts and 25.81 loads of trim. Pork cutout values: up $2.11, $106.88. Wednesday's slaughter is estimated at 484,000 head, 1,000 head more than a week ago and 12,000 head more than a year ago. The CME Lean Hog Index for Sept. 12: down $0.62, $97.67.
THURSDAY'S CASH HOG CALL: Lower. Given that packers bought over 16,000 head in Wednesday's cash market likely means that they'll be less aggressive come Thursday.
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