Wednesday Midday Livestock Market Update - Contracts Continue to Bleed Lower

GENERAL COMMENTS:

Yet again, we see another day where the livestock complex plummets lower as outside pressures of the market's economy continued to consume the largest portion of the market's focus. December corn is up 1 3/4 cents per bushel and December soybean meal is down $2.10. The Dow Jones Industrial Average is up 393.49 points.

LIVE CATTLE:

The cash cattle market hasn't seen any business renewed at this point, and aside from the few head that traded Tuesday afternoon for steady prices, largely the market remains undeveloped. If the cash cattle market can successfully keep prices steady, then that bodes well for entire cattle complex as it shows that strength remains in some of the market's fundamentals. But given that packers have paid the market little to no attention Wednesday, feedlots are going to have their work cutout for them this week as packers will use the market's weakness as a bargaining tool. October live cattle are down $0.50 at $143.07, December live cattle are down $0.70 at $146.20 and February live cattle are down $0.55 at $150.30.

The Fed Cattle Exchange Auction held Wednesday reported seven lots (six lots in Texas and one lot in Kansas), totaling 1,077 head of cattle, none of which sold. Opening prices were at $141, high bids had a range of $141 to $143, but none of these bids met reserve prices of $143 to $144.

Boxed beef prices are mixed: choice up $0.40 ($248.83) and select down $1.29 ($219.92) with a movement of 113 loads (69.20 loads of choice, 20.89 loads of select, 12.90 loads of trim and 10.34 loads of ground beef).

FEEDER CATTLE:

With the live cattle market aiding no support to the feeder cattle complex and corn trading just slightly above steady prices, the feeder cattle complex is again trending lower into Wednesday's afternoon. October feeders are down $1.25 at $174.87, November feeders are down $1.07 at $175.20 and January feeders are down $0.75 at $176.05. As September looks at its final trading days of the month, cow-calf producers who have yet to sell their calves are scratching their heads, wondering when this pressure will ease and how much more it's going to cost the market in the meantime.

LEAN HOGS:

The entire livestock complex has taken a beating this week, but the lean hog complex's chart is ugly -- very ugly. Day after day, the market carves out a new low for the move, which is equivalent to the lowest prices the market has seen since in the last nine months. Questions about demand continue to hang over both the cattle and hog markets, but especially in the hog market as China has attempted to cheapen their own pork prices by releasing reserves three times this month. Nevertheless, both packers and producers are praying that export demand shows something positive come Thursday, and both continue to anxiously monitor domestic prices as support is dearly needed. October lean hogs are up $0.05 at $88.75, December lean hogs are down $0.52 at $75.72 and February lean hogs are down $1.02 at $79.32.

The projected lean hog index for Sept. 27 down $0.81 at $95.60, and the actual index for Sept. 26 is down $0.58 at $96.41. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.26 with a weighted average of $89.25, ranging from $82.00 to $102.00 on 4,303 head and a five-day rolling average of $90.59. Pork cutouts total 152.45 loads with 132.56 loads of pork cuts and 19.89 loads of trim. Pork cutout values: up $0.89, $99.90.