GENERAL COMMENTS:
It was a mundane Tuesday for the livestock complex as market participants watched temperatures rise while nothing developed in the livestock arena. No cash cattle trade was reported throughout the day, but some interest could begin to develop by Wednesday. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.90 with a weighted average price of $89.75 on 3,969 head. December corn is down 3 cents per bushel and December soybean meal is down $1.50. The Dow Jones Industrial Average is down 180.70 points.
LIVE CATTLE:
It was a lackadaisical day for the live cattle complex as traders let time pass by without overly exerting themselves in the marketplace. As temperatures rise this week and we're again reminded that we are currently working our way through the dog days of summer, feedlots and packers will continue to engage in what feels like a weekly battle, as both parties want different outcomes in the cash market. Packers have reduced slaughter speeds as a way to pump the brakes on the cash market but, as of right now, feedlots remain current enough in their showlists that they're able to fight for steady prices. No cash cattle trade developed throughout Tuesday's market and it's likely that we won't see any trade until late Wednesday or potentially even later in the week. Bids and asking prices remain elusive at this point. October live cattle closed $1.25 lower at $178.62, December live cattle closed $1.15 lower at $183.15 and February live cattle closed $0.95 lower at $187.30.
Tuesday's slaughter is estimated at 124,000 head, 1,000 head less than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed higher: choice up $1.49 ($317.05) and select up $2.18 ($289.51) with a movement of 96 loads (51.30 loads of choice, 15.79 loads of select, 15.48 loads of trim and 13.19 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to $1.00 lower. Given that packers were able to get some cattle bought with time last week and were able to work the market about $1.00 lower, their aim this week is going to be the same thing.
FEEDER CATTLE:
The feeder cattle complex closed lower as traders sidelined the market after helping advance the complex Monday. Traders wanted to acknowledge the supportive nature of last Friday's Cattle on Feed report, but as everyone looks to this week and what the market may or may not accomplish, there are some concerns as temperatures are brutally high and it's expected that packers will try to keep cash prices depressed again this week. Thankfully the corn complex isn't adding any additional pressure to the feeder cattle market as cow calf producers patiently wait for the dog days of summer to pass by. September feeders closed $1.32 lower at $249.00, October feeders closed $1.42 lower at $251.22 and November feeders closed $1.25 lower at $252.27. The CME Feeder Cattle Index for Aug. 21: not available at this time.
LEAN HOGS:
The lean hog complex was also pressured to round out the day lower as traders looked for support, but ultimately came up short handed in Tuesday's market. Even though pork cutout values did close lower, it was impressive to see that the day's movement came in at 372.94 loads. October lean hogs closed $1.05 lower at $79.57, December lean hogs closed $1.37 lower at $72.35 and February lean hogs closed $1.47 lower at $76.55. Pork cutouts totaled 372.94 loads with 329.18 loads of pork cuts and 43.75 loads of trim. Pork cutout values: down $1.56, $103.65. Tuesday's slaughter is estimated at 476,000 head, steady with a week ago and 6,000 head less than a year ago. Monday's hog slaughter was revised to 471,000 head. The CME Lean Hog Index for Aug. 18: down $0.80, $98.81.
WEDNESDAY'S HOG CALL: Lower. With demand seeming grim, packers will likely buy a larger volume of hogs on Wednesday, but prices won't likely jump higher.
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