GENERAL COMMENTS:
The livestock complex is trading mixed into Wednesday's afternoon as the live cattle, feeder cattle and lean hog contracts are trending lower while it waits to see how the market's cash cattle trade fares. No bids have been renewed at this point and it wouldn't be unlikely to see trade delayed until Thursday. December corn is down 9 cents per bushel and December soybean meal is down $2.50. The Dow Jones Industrial Average is up 31.73 points.
LIVE CATTLE:
Packers love when chaos flows through the market right ahead of their usual time of bidding cattle. With Tuesday's gut-turning inflation announcement, combined with the potential rail strike, the market sits with plenty of chaos right now. No bids have hit the market at this point and it's looking like packers are trying to play hard ball to pressure feedlots. However, when feedlots look at the market's current grading data and daily slaughter estimates, they can't deny knowing that packers need cattle and that gives them a window of opportunity to push prices higher. October live cattle are down $0.42 at $144.37, December live cattle are down $0.37 at $150.07 and February live cattle are down $0.20 at $154.50. It wouldn't be unlikely to see bids arise Wednesday afternoon, but it's equally as likely that trade waits until Thursday to develop.
Boxed beef prices are lower: choice down $2.46 ($254.20) and select down $2.77 ($230.81) with a movement of 123 loads (82.28 loads of choice, 23.64 loads of select, 8.79 loads of trim and 7.93 loads of ground beef).
FEEDER CATTLE:
As the corn market drifts lower, the feeder cattle market is attempting to take back some of the position that Tuesday lost. September feeders are up $1.00 at $180.45, October feeders are up $1.32 at $181.85 and November feeders are up $1.02 at $183.37. The live cattle market isn't lending any support as its complex drifts lower, and packers are again playing hard ball in the cash market as no bids have surfaced. Regardless, the feeder cattle market is making the most of the corn market's weakness but could trade even higher than it is now if the live cattle market was supportive in its nature too.
LEAN HOGS:
The lean hog complex hasn't weakened since its stunning performance in Tuesday's market. The spot October contract is trading slightly lower, but otherwise the market is continuing to add modestly to its complex. Helping matters is that both the cash market and pork cutout values are seeing interest at midday. We know that you can't put the cart before the horse in terms of midday pork cutout value, but anytime you see slightly higher trade, it gives the market a pleasant little nudge. Meanwhile, the near 10,000-head that have traded in the cash hog market is a pleasant announcement as packers have been lackadaisical buyers in the market as of late and terribly hard to predict with margins as thin as they are. October lean hogs are down $0.50 at $95.25, December lean hogs are up $0.32 at $86.02 and February lean hogs are up $0.27 at $89.95.
The projected lean hog index for Sept. 13 is down $0.09 at $97.58 and the actual index for Sept. 12 is down $0.62 at $97.67. Hog prices on the Daily Direct Moring Hog Report average $97.02, ranging from $89.00 to $102.50 on 9,505 head and pushing the five-day weighted average to $93.93. Pork cutouts total 146.64 loads with 135.69 loads of pork cuts and 10.95 loads of trim. Pork cutout values: up $0.38, $105.15.
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