GENERAL COMMENTS:
The cattle contracts are trading higher into Wednesday's afternoon as cheaper corn prices encourage both feeder cattle buyers in the countryside and traders alike. Meanwhile, the lean hog complex isn't seeing the same interest as pork demand remains questionable. December corn is down 3 1/4 cents per bushel and December soybean meal is down $1.50. The Dow Jones Industrial Average is down 189.47 points.
LIVE CATTLE:
The slight uptick in boxed beef prices is encouraging to traders as it could give packers a little more margin to work with and allow them to continue to stay active in the cash market. The boxed beef complex is a dicey subject right now. With limited supplies of beef available, packers need to keep processing cattle in order to ensure that retailers have enough product to sell to consumers. If packers slow down processing speeds too much and retailers are forced to raise prices, it's fair to wonder just how much more consumers are willing to pay for beef as prices are already high and from an economic standpoint, the U.S. consumer doesn't have extra change jingling in their pockets. No cash cattle trade has developed yet and still, bids and asking prices are elusive. It's unlikely that any business develops ahead of Thursday and could be delayed until Friday at this point too. August live cattle are up $0.55 at $180.25, October live cattle are up $0.52 at $181.42 and December live cattle are up $0.07 at $185.27.
Boxed beef prices are higher: choice up $1.52 ($303.91) and select up $1.82 ($277.98) with a movement of 81 loads (35.90 loads of choice, 16.14 loads of select, 17.88 loads of trim and 11.38 loads of ground beef).
FEEDER CATTLE:
With the nearby corn contracts tracking $0.02 lower and the live cattle contracts trading higher and lending support -- the feeder cattle market is cautiously trading higher. Demand continues to remain incredible throughout the countryside as video sales and sale barns alike are seeing tremendous interest from buyers as limited supplies are keeping market participants in a constant bidding war. The long-term outlook of strong 2024 live cattle/cash cattle prices is helping reassure buyers. August feeders are up $0.80 at $246.80, September feeders are up $0.62 at $250.05 and October feeders are up $0.50 at $251.72.
LEAN HOGS:
The lean hog complex isn't seeing the same Wednesday morning support that the cattle complex is as its contracts fade lower. Pork cutout values did close lower Tuesday afternoon which could be cautioning traders, and even though midday pork cutout values are higher, everyone knows not to put too much faith in the midday report. The cash hog market should see more business develop, but prices may remain steady/somewhat lower as pork demand has been volatile. October lean hogs are down $2.05 at $82.47, December lean hogs are down $1.57 at $75.55 and February lean hogs are down $1.27 at $79.75.
The projected lean hog index for Aug. 8 is down $0.24 at $104.34, and the actual index for Aug. 7 is down $0.46 at $104.58. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.80 with a weighted average price of $99.52, ranging from $92.00 to $102.00 on 4,952 head. Pork cutouts total 152.76 loads with 132.46 loads of pork cuts and 20.30 loads of trim. Pork cutout values: up $0.53, $112.62.
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