The entire livestock complex grew cold as the market absorbed the latest Consumer Price Index report, which printed current inflation at 8.2% compared to a year ago. The onset of higher inflation likely means that interest rates will again be raised by the Feds as a means to try to curb inflation. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.03 with a weighted average of $89.26 on 8,887 head. December corn is up 4 3/4 cents per bushel and December soybean meal is down $3.30. The Dow Jones Industrial Average is up 899.72 points.
LIVE CATTLE:The live cattle complex closed lower as the market was rattled by the day's Consumer Price Index report, which shared, yet again, higher inflation. The market's fundamentals are still strong with throughput running aggressively and the fact that cash cattle have traded $1.00 to $2.00 higher again this week. Throughout the Southern Plains, live cattle traded for $145, which is $1.00 higher than last week; and in the North dressed cattle averaged $232, which is $2.00 higher than last week. October live cattle closed $0.27 higher at $146.45, December live cattle closed $0.52 lower at $147.92 and February live cattle closed $0.42 lower at $151.70.
Thursday's slaughter is estimated at 127,000 head, steady with a week ago and 6,000 head more than a year ago.
Thursday's actual slaughter data showed that, for the week ending Oct. 1, steers averaged 917 pounds, which was2 pounds more than the week before and 1 pound more than a year ago. For the same week, heifers averaged 840 pound, which was four pounds more than both the previous week and year ago.
Boxed beef prices closed mixed: choice down $0.13 ($246.53) and select up $1.60 ($215.86) with a movement of 196 loads (127.76 loads of choice, 33.49 loads of select, 24.08 loads of trim and 10.56 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: Steady. Given that cattle have traded in both regions, it's likely that prices remain steady at this point.
FEEDER CATTLE:The feeder cattle contracts closed lower as the corn market pushed a $0.04 to $0.05 rally ahead of closing, which came along the bearish news of yet again another hike in inflation. October feeders closed $0.75 lower at $174.75, November feeders closed $0.57 lower at $176.10 and January feeders closed $0.60 lower at $176.30. At La Junta Livestock Commission in La Junta, Colorado, compared to last week, steer calves traded uneven as steers weighing under 500 pounds sold steady with instances of $9.00 higher, steers weighing 500 to 600 pounds traded $3.00 to $5.00 lower and steers weighing 600 to 700 pounds traded steady to $2.00 lower. Heifer calves under 500 pounds sold steady to $2.00 higher, those weighing 500 to 600 pounds traded $5.00 to $8.00 stronger and heifers weighing 600 to 700 pounds sold steady to $2.00 higher. Yearling steers sold $2.00 to $3.00 lower, and yearling heifers traded steady to $2.00 lower. Slaughter cows traded $3.00 to $5.00 lower and slaughter bulls sold steady. Feeder cattle supply over 600 pounds was 55%. The CME Feeder Cattle Index for Oct. 12: down $1.01, $174.03.
LEAN HOGS:The lean hog complex was able to avoid the market's pressure after seeing the latest Consumer Price Index report. The market did, however, see only a mild set back in its prices. Heading into Friday's market, traders and hog producers will both be looking for the day's export data and use that as a means to gauge demand internationally, and as a way to gauge how much product will be needing to be circulated throughout domestic markets. December lean hogs closed $0.10 lower at $80.60, February lean hogs closed $0.15 lower at $81.72 and April lean hogs closed $0.15 lower at $85.40. Pork cutouts totaled 255.22 loads with 224.36 loads of pork cuts and 30.86 loads of trim. Pork cutout values: down $0.87, $103.07. Thursday's slaughter is estimated at 491,000 head, 2,000 head more than week ago and 17,000 head more than a year ago. The CME Lean Hog Index for Oct. 11: down $0.46, $92.49.
FRIDAY'S CASH HOG CALL: Lower. Given that packers didn't show much interest in Thursday's market, it's likely that they won't be very aggressive in Friday's market as they've fulfilled their commitment.
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