GENERAL COMMENTS:
The livestock complex had a lackluster day with the market not seeing much support from its fundaments or from traders throughout the futures complex. No cash cattle trade developed, and trade is expected to be delayed until Thursday or Friday of this week again. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.83 with a weighted average price of $99.25 on 12,740 head. December corn is up 3 cents per bushel and December soybean meal is up $2.40. The Dow Jones Industrial Average is down 158.64 points.
LIVE CATTLE:
The live cattle complex closed mixed with the market's nearby contracts closing lower while the deferred contracts closed higher. More than anything today's mixed market came as traders are patiently waiting to see what happens this week in terms of boxed beef demand and prices, and in the cash market. No cash cattle trade was reported throughout the day and bids and asking prices are both still elusive. August live cattle closed steady at $179.70, October live cattle closed $0.52 lower at $180.90 and December live cattle closed $0.57 lower at $185.20.
Tuesday's slaughter is estimated at 124,000 head - steady with a week ago and 2,000 head less than a year ago. Monday's slaughter was revised to 123,000 head.
Boxed beef prices closed higher: choice up $0.90 ($302.39) and select up $1.15 ($276.16) with a movement of 120 loads (71.19 loads of choice, 24.74 loads of select, 11.54 loads of trim and 12.91 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Given that packers were able to buy cattle with time last week, it's anyone's guess how prices land this week.
FEEDER CATTLE:
The combination of slightly higher corn prices amid a weak live cattle complex led to the demise of the feeder cattle contracts Tuesday afternoon. August feeders closed $0.97 lower at $246.00, September feeders closed $1.45 lower at $249.42 and October feeders closed $1.67 lower at $251.22. I did find it interesting however that in the sale report noted next, that heifer calves sold slightly higher. I don't believe that the cowherd has begun to be rebuilt by any measure, but it seems as though there's been good interest lately on replacement quality stock. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers and heifers traded steady. Steer calves sold steady and heifer calves sold $2.00 to $4.00 higher. It was also noted in the sale report that buyers are dipping down in quality just to fill their orders as supplies of both feeders and calves remain thin. Feeder cattle supply over 600 pounds was 69%. The CME feeder cattle index 8/7/2023: down $0.82, $245.02.
LEAN HOGS:
The lean hog complex was a mixed bag all through Tuesday's market and consequently through the day's end as well. Yes, cash prices did see an improvement from Monday, but pork cutout values suffered, and the board saw hit-and-miss interest from traders. The only cut that was able to close the day higher was the picnic, which gained $2.80 from Monday's close, while all the other cuts closed lower. The carcass price was pulled down aggressively however by a $17.16 decline in the belly. October lean hogs closed $0.25 lower at $84.57, December lean hogs closed $0.10 higher at $77.12 and February lean hogs closed $0.17 higher at $81.00. Pork cutouts totaled 292.45 loads with 265.85 loads with 26.60 loads of trim. Pork cutout values: down $3.22, $112.09. Tuesday's slaughter is estimated at 471,000 head - 5,000 head less than a week ago and 3,000 head less than a year ago. The CME lean hog index 8/4/2023: down $0.43, $105.04.
WEDNESDAY'S HOG CALL: Steady. Given that pork cutout values were lower through Tuesday's close, cash prices could trade steady to somewhat higher only because packers likely need more hogs for the week -- not because demand was supportive today.
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