GENERAL COMMENTS:
As expected, the cattle contracts are trading higher as traders are finally given the opportunity to trade last week's bullish Cattle on Feed report. Meanwhile, the lean hog complex is trading sheepishly as traders continue to hunger for support from the market's fundamentals. December corn is down 6 1/2 cents per bushel and December soybean meal is up $4.70. The Dow Jones Industrial Average is down 195.30 points.
LIVE CATTLE:
The live cattle complex is trading higher as traders find comfort in last Friday's bullish Cattle on Feed report. With beef demand strong and front-end supplies tight, the slight dip in on-feed numbers and the reduction in placements should continue to keep the cash cattle market well supported. October live cattle are up $1.02 at $179.82, December live cattle are up $1.02 at $184.20 and February live cattle are up $0.90 at $188.27.
Last week's cash cattle trade began late Tuesday afternoon and continued to develop throughout the remainder of the week. Southern live cattle traded at $177 to mostly $179 which is $1.00 lower than the previous week's weighted average. Northern dressed cattle traded from $290 to $298 but most at $294 to $295 which is steady to $1.00 lower than the previous week's weighted average.
Boxed beef prices are lower: choice down $0.87 ($315.24) and select down $2.46 ($285.90) with a movement of 39 loads (19.16 loads of choice, 12.91 loads of select, 4.44 loads of trim and 1.99 loads of ground beef).
FEEDER CATTLE:
Traders are celebrating the bullish nature of last week's Cattle on Feed report as they send the feeder cattle contracts $1.00 to $2.00 higher this morning. At first the corn complex leapt into the day with mild support, but as time has progressed corn prices are trading lower which is also allowing for the feeder cattle complex to trade higher. September feeders are up $1.92 at $250.45, October feeders are up $1.95 at $252.57 and November feeders are up $1.95 at $253.37. It will be especially interesting to watch how feeder cattle prices fare this week in the countryside and on video sales as the sharp decline in placements could make to where feeder cattle buyers have to support the market even more than they recently have been.
LEAN HOGS:
The lean hog complex is trading lower after traders ran the market sharply higher last Friday. October lean hogs are down $0.95 at $81.17, December lean hogs are down $0.70 at $73.80 and February lean hogs are down $0.40 at $78.20. The market will continue to look for fundamental support but as of late, fundamental support has been nearly impossible to come by as dramatic swings continue to be seen in cutout values.
The projected lean hog index for 8/18/2023 is down $0.80 at $98.81, and the actual lean hog index for 8/17/2023 is down $0.71 at $99.61. Hog prices are lower on the Daily Direct Afternoon Hog Report, down $3.33 with a weighted average price of $90.29, ranging from $86.00 to $91.50 on 284 head and a five-day rolling average of $94.18. Pork cutouts total 167.34 loads with 150.60 loads of pork cuts and 16.74 loads of trim. Pork cutout values: up $0.17, $106.34.
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