GENERAL COMMENTS:
It was a quiet and mundane trading day for the livestock complex as traders paid the market little attention and largely let the contracts drift lower throughout Monday's market. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.20 with a weighted average price of $96.15 on 4,654 head. December corn is up 1/2 cent per bushel and December soybean meal is up $3.30. The Dow Jones Industrial Average is up 15.11 points.
LIVE CATTLE:
The live cattle complex didn't see much action throughout Monday's trade as traders simply weren't willing to support the market at this time. August live cattle closed $0.62 lower at $179.75, October live cattle closed $0.65 lower at $180.67 and December live cattle closed $0.47 lower at $184.97. The cash cattle market won't likely see any interest until later in the week and given that it's a Cattle on Feed report week, trade could be delayed until Friday again. New showlists appear to be higher in all major feeding states. Monday's slaughter is estimated at 119,000 head -- 4,000 head less than a week ago and 2,000 head less than a year ago.
Last week packers and feedlots again went toe-to-toe and trade was delayed until Friday. Northern dressed cattle traded for $292 to $300, but most at $295 to $300, which is steady to $3.00 higher than the prior week's weighted average. Southern live cattle traded even later than the North, and sold for $180 to $185, but mostly at $180, which is steady with the previous week's weighted average. Last week's negotiated cash cattle trade totaled 74,147 head. Of that, 79% (58,289 head) were committed to the nearby delivery, while the remaining 21% (15,858 head) were committed to the deferred delivery.
Boxed beef prices closed higher: choice up $2.89 ($305.50) and select up $3.22 ($280.45) with a movement of 96 loads (62.35 loads of choice, 16.92 loads of select, 7.93 loads of trim and 8.97 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Given that showlists are slightly higher this week and that a Cattle on Feed report will be released on Friday, cash cattle prices are likely to remain steady.
FEEDER CATTLE:
Corn prices closed mostly steady, but the feeder cattle market's inability to close higher stemmed from the fact that traders simply weren't willing to jump into Monday's market and trade the cattle contracts strong fundamental position. As traders looked at today's market, they immediately threw up cautious signals as later this week another Cattle on Feed report will be released, and as traders would like to see complementary support from the live cattle/cash cattle market before they support feeders anymore. August feeders closed $1.52 higher at $246.22, September feeders closed $1.32 higher at $250.12 and October feeders closed $1.02 lower at $251.85. The CME feeder cattle index 8/11/2023: up $0.29, $244.81.
LEAN HOGS:
The lean hog complex suffered the most out of all the livestock contracts through Monday's trade as its market rounded out the day $1.00 to $2.00 lower. October lean hogs closed $2.17 lower at $79.15, December lean hogs closed $1.85 lower at $72.65 and February lean hogs closed $1.55 lower at $77.00. Thankfully this afternoon's pork cutout report didn't post wild swings in prices, which has been the norm over the last couple of days. The ham posted the biggest day-over-day loss as it fell $6.43 lower. Pork cutouts totaled 252.71 loads with 226.17 loads of pork cuts and 26.54 loads of trim. Pork cutout values: down $1.00, $109.08. Monday's slaughter is estimated at 461,515 head -- 50,515 head more than a week ago and 17,515 head more than a year ago. The CME lean hog index 8/10/2023: down $0.85, $103.06.
TUESDAY'S HOG CALL: Steady. It's likely that packers buy more hogs in Tuesday's market, but prices could simply remain steady as pork cutout values have been all over the board lately.
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