GENERAL COMMENTS:
It was another tough day in the marketplace for livestock producers as they watched lower closes overcome the live cattle, feeder cattle and lean hog markets. Heading into Thursday's market, the morning's export data is going to be highly sought after as both beef and pork producers desperately need all the support they can get for foreign markets. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $4.09 with a weighted average of $93.28 on 8,336 head. December corn is up 3 cents per bushel and December soybean meal is down $0.90. The Dow Jones Industrial Average is up 548.75 points.
LIVE CATTLE:
The live cattle complex fell right in line with the rest of the livestock complex's lower ending trend. October live cattle closed $0.52 lower at $143.05, December live cattle closed $0.62 lower at $146.27 and February live cattle closed $0.67 lower at $150.17. Boxed beef prices took a hit Wednesday afternoon as both select and choice cuts closed lower, but thankfully some of that pressure that the market absorbed can be offset by the day's aggressive slaughter pace and steady to $1.00 lower cash cattle trade. There was a light to moderate movement in the North were cattle traded for mostly $228 which is $1.00 lower than last week's weighted average (but some cattle did trade for $231). A few more pens sold in the South for $143, which is steady with both Tuesday's business and last week's weighted average. It's likely that the week's cash cattle sales are all but done with given that packers bought aggressively last week.
Wednesday's slaughter is estimated at 127,000 head, steady with a week ago but 9,000 head more than a year ago.
Boxed beef prices closed lower: choice down $0.88 ($247.55) and select down $2.00 ($219.21) with a movement of 165 loads (97.43 loads of choice, 33.21 loads of select, 18.74 loads of trim and 15.36 loads of ground beef). The choice/select spread sits at $28.34.
THURSDAY'S CASH CATTLE CALL: Steady. Any more cattle that trade will likely fall right in line with the week's average.
FEEDER CATTLE:
The nearby corn contracts were able to tack on another $0.03 to their contracts before the day's end, which kept the feeder cattle contracts trading lower through Wednesday's close. The market stood little chance of trading higher given the stiff outside pressures that's fully infiltrated the livestock complex, but with that, and the combination of slightly higher corn prices, a lower close was the market's only option. October feeders closed $1.12 lower at $175.00, November feeders closed $1.00 lower at $175.27 and January feeders closed $0.85 lower at $175.95. At Bassett Livestock Auction in Bassett, Nebraska, compared to two weeks ago, 850-pound steers traded steady, but those weighing 900 to 950 pounds traded $4.00 to $8.00 lower. Compared heifer offerings weighing 850 pounds traded $4.00 lower. Feeder cattle supply over 600 pounds for that sale was 100%. At Kingsville Livestock Auction in Kingsville, Missouri, compared to last week, the majority of steers under 800 pounds traded $5.00 to $10.00 higher and those over 800 pounds traded $3.00 to $5.00 stronger. Heifers sold firm to $3.00 higher. Demand was good for a heavy supply as dry conditions are bringing cattle to town sooner than normal and this week's sale saw a significant increase in the number of calves that were offered. Feeder cattle supply over 600 pounds for that sale was 51%. The CME Feeder Cattle Index for Sept. 27: down $0.36, $177.46.
LEAN HOGS:
The lean hog complex continued to bleed through Wednesday's end but thankfully the market's losses weren't as steep as the day's earlier this week. October lean hogs closed $0.67 higher at $89.37, December lean hogs closed $0.42 lower at $75.82 and February lean hogs closed $0.87 lower at $79.47. Thursday is going to be a big day for the hog market as traders and hog producers alike will be mulling over the day's export report, and the afternoon's Quarterly Hogs and Pigs report. Pork cutouts totaled 275.79 loads with 229.62 loads of pork cuts and 46.17 loads of trim. Pork cutout values: up $1.76, $100.77. Wednesday's slaughter is estimated at 484,000 head, steady with a week ago but 17,000 head more than a year ago. The CME Lean Hog Index for Sept. 26: down $0.58, $96.41.
THURSDAY'S CASH HOG CALL: Lower. Packers have shown considerable interest in this week's market. Even though Wednesday's afternoon report showed lower prices, the day's volume was noteworthy given that packers were aggressive on both Monday and Tuesday of this week.
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