Friday Midday Livestock Market Summary - Cattle Head Higher as Market Awaits Cattle on Feed Report

GENERAL COMMENTS:

The cattle contracts are back to trading higher while the lean hog complex continues to endure stiff pressure. The cattle market is eager to see what Friday afternoon's Cattle on Feed report unveils as the report is projected to display lighter on-feed numbers and fewer placements. December corn is up 3/4 cent per bushel and December soybean meal is down $2.70. The Dow Jones Industrial Average is up 25.73 points.

LIVE CATTLE:

After being pressured throughout all of Thursday's trade, the live cattle complex is back to trading mostly $1.00 higher Friday. The market is anxiously waiting to see what comes of this afternoon's Cattle on Feed report as there's a chance lighter placements could mildly support the market. Placements and total on-feed numbers are expected to be lighter than a year ago, which should naturally add support to the complex, but seeing that support carry over into stronger trade throughout the futures contracts remains the question. No new cash cattle sales have been reported following the trade that developed Thursday afternoon. Southern live cattle were marked at $183 and Northern dressed cattle were marked at $292 -- both of which are steady with last week's weighted averages. October live cattle are up $1.47 at $186.45, December live cattle are up $1.30 at $190.80 and February live cattle are up $1.07 at $195.15.

Boxed beef prices are higher: choice up $2.24 ($304.17) and select up $1.30 ($280.30) with 66 loads (42.67 loads of choice, 9.19 loads of select, 4.40 loads of trim and 9.76 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex also is trading higher into Friday's noon hour as traders feel reaffirmed in their decision to move the contracts higher as they watch the live cattle contracts trade mildly higher as well. September feeders are up $0.82 at $254.10, October feeders are up $1.20 at $258.97 and November feeders are up $0.62 at $263.32. This afternoon's Cattle on Feed report could be another feather of support for the market if placements land on the lower end of analysts' estimates. Either way, demand in the countryside remains incredibly strong, which continues to keep the market from seeing much downside.

LEAN HOGS:

It's looking as though Thursday's downturn in the lean hog market wasn't just because of the outside economical pressures the market was facing, but also because traders felt as though the market's recent run was overdone. The complex is trading anywhere from $1.00 to $2.00 lower with the nearby contracts enduring the most pressure. October lean hogs are down $0.70 at $82.25, December lean hogs are down $2.02 at $72.45 and February lean hogs are down $2.05 at $75.70. At this point it's likely the market will close with this grim tone and look to next week's complex to either add support or find a bottom for the move.

The projected CME Lean Hog Index for 9/21/2023 is down $0.09 at $87.08, and the actual index for 9/20/2023 is up $0.50 at $87.17. Hog prices on the Daily Direct Morning Hog Report average $77.95, ranging from $73.00 to $80.00 on 2,360 head and a five-day rolling average of $78.24. Pork cutouts total 196.35 loads with 178.86 loads of pork cuts and 17.49 loads of trim. Pork cutout values: down $0.29, $98.46.