GENERAL COMMENTS:
Traders threw themselves at the cattle complex on Monday to showcase that they indeed found the Cattle on Feed report supportive, but their supportive gesture hasn't carried into Tuesday's markets as both the live cattle and feeder cattle contracts are trading lower. The lean hog complex is also trading lower as fundamentally traders just aren't seeing the support necessary to merit steady/higher trade. December corn is down 6 3/4 cents per bushel and December soybean meal is down $4.10. The Dow Jones Industrial Average is down 127.74 points.
LIVE CATTLE:
The live cattle complex is trading lower as traders seem to be patiently waiting for this week's market to reveal itself. Traders are continuing to look for signals from the cash market as to which direction it may trade this week and for demand signs from boxed beef prices. No cash cattle trade has developed yet and it's unlikely that we'll see much action in the cash market ahead of Wednesday. Bids and asking prices remain elusive. It is supportive however that boxed beef prices are higher which continues to prove that consumers are hungry, and it could keep packers more engaged in the cash sector as well. October live cattle are down $1.27 at $178.60, December live cattle are down $1.17 at $183.12 and February live cattle are down $0.95 at $187.30.
Boxed beef prices are higher: choice up $1.64 ($317.20) and select up $2.35 ($289.68) and with a movement of 54 loads (27.46 loads of choice, 8.94 loads of select, 10.74 loads of trim and 6.90 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex has stalled out as traders keep the market merely steady with Monday's close. Thankfully corn prices aren't adding any additional pressure as they continue to trek downward, but traders would like to see continued support in the live cattle/cash cattle markets before they push feeders much higher. September feeders are down $0.77 at $249.55, October feeders are down $0.87 at $251.75 and November feeders are down $0.77 at $252.75.
LEAN HOGS:
The lean hog complex continues to trail lower as traders aren't seeing the fundamental backing needed to maintain Friday's advancement. Neither cash prices nor pork cutout values are higher at noon which is contributing to the market's current weakness. October lean hogs are down $0.72 at $79.90, December lean hogs are down $1.35 at $72.37 and February lean hogs are down $1.22 at $76.80.
The projected lean hog index for 8/21/2023 is down $0.77 at $98.04, and the actual index for 8/18/2023 is down $0.80 at $98.61. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.13 with a weighted average price of $89.16, ranging from $88.00 to $93.00 on 1,015 head and a five-day rolling average of $92.65. Pork cutouts totaled 198.99 loads with 177.57 loads of pork cuts and 21.43 loads of trim.
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