GENERAL COMMENTS:
The livestock complex is seeing hit and miss support in Friday's market as the feeder cattle complex wanes lower as a lack of overall support stifles the market, especially now that corn is trading higher. The lean hog complex has seemed to run out of steam after trading excitedly through Thursday's market as the industry saw excellent cash demand earlier in the week and a strong export report. The live cattle complex has traded on both sides of steady Friday morning but with midday boxed beef prices sporting stronger figures, its market is trading mildly higher. December corn is up 8 1/4 cents per bushel and December soybean meal is up $4.90. The Dow Jones Industrial Average is down 541.17 points.
LIVE CATTLE:
The live cattle complex began the day off trading lower but as time has progressed the market has turned more friendly and is turning mildly higher heading into Friday's afternoon. October live cattle are up $0.02 at $145.35, December live cattle are up $0.35 at $148.22 and February live cattle are up $0.20 at $151.82. Helping the market grow stronger as the day's progressed is undoubtedly the notice of higher midday boxed beef prices. As the boxed beef market has seen more support this week, the market's recent support begs the reasonable question of: Have boxed beef prices found their bottom for the season? The cash cattle market hasn't seen any more trade develop as packers did most of their buying on Thursday. Throughout the week, Southern live cattle have traded at $144, which is $1.00 higher than last weeks weighted average and Northern dressed cattle sold mostly for $230, which is also $1.00 higher than last week's weighted average.
Fresh beef imports for the week total 21,245 metric tons with Canada, Mexico and Australia carrying the lion's share of the trade. To date, fresh beef imports in 2022 are 7% higher than compared to a year ago. Processed beef imports for the week totaled 1,628 metric tons with Brazil contributing 63% of the shipment. To date processed beef imports in 2022 are 18% higher than compared to a year ago.
Boxed beef prices are higher: choice up $0.19 ($247.55) and select up $1.67 ($218.66) with a movement of 83 loads (48.01 loads of choice, 18.33 loads of select, zero loads of trim and 17.05 loads of ground beef).
FEEDER CATTLE:
The feeder cattle wouldn't budge and even contemplate trading higher through Thursday's market, which lent some positive factors that could have helped the market trade mildly higher (weaker corn prices, higher fat cattle trade), but now that the market is looking at a $0.06 to $0.07 rally in corn, it's surely not trading higher into Friday's afternoon. October feeders are down $0.40 at $175.27, November feeders are down $0.22 at $176.20 and January feeders are down $0.82 at $177.02. The feeder cattle market has hit a lull where it desperately needs support, and with buyers and traders leery of the U.S. economy, feeder prices, interest rates and inflation -- the market could be settling into a lower tone for the mean time.
LEAN HOGS:
After posting a rather sporty rally throughout Thursday's market, which was largely fueled by strong exports and continued support in domestic demand, the lean hog complex has seemed to run of out steam come Friday. December lean hogs are down $0.57 at $77.20, February lean hogs are down $0.27 at $80.02 and April lean hogs are down $0.12 at $85.50. Midday pork cutout values are higher (which doesn't mean a whole lot given that anything could happen by the afternoon's report), but it is a stronger price nonetheless and packers are meticulously watching demand cues.
The projected lean hog index for Oct. 6 is down $0.12 at $92.65, and the actual index for Oct. 5 is down $0.16 at $92.77. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.68 with a weighted average of $87.64, ranging from $83.00 to $95.00 on 3,523 head and a five-day rolling average of $87.83. Pork cutouts total 166.92 loads with 144.57 loads of pork cuts and 22.35 loads of trim. Pork cutout values: up $1.76, $103.17.
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