GENERAL COMMENTS:
It was a doggish Monday for the livestock complex as all three of the markets closed lower. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.33 with a weighted average price of $77.86 on 7,717 head. December corn is down 4 3/4 cents per bushel and December soybean meal is down $4.20. The Dow Jones Industrial Average is up 6.06 points.
LIVE CATTLE:
The live cattle contracts withdrew from their bullish push forward and rounded out Monday's market lower. That's not to say that the market has seen all that it's going to see, but rather that traders are exhausted for the time being and wonder if they overdid last week's big push. Finding those answers will come in the weeks ahead as trade plays out. October live cattle closed $0.60 lower at $186.32, December live cattle closed $0.82 lower at $191.00 and February live cattle closed $0.57 lower at $195.75. New showlists appear to be somewhat lower in Texas, and lower in Kansas, and Nebraska/Colorado. Monday's slaughter is estimated at 121,000 head -- 4,000 head less than a week and a year ago.
Last week most of the cash cattle sales held off until Friday when prices were marked $183 in the South which is $3.00 higher than the previous week's weighted average, and $286 to $292 in the North which is steady to $2.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 74,039 head. Of that 90% (66,602 head) were committed for the nearby delivery while the remaining 10% (7,437 head) were committed for the deferred delivery.
Boxed beef prices closed mixed: choice down $0.39 ($305.32) and select up $0.29 ($283.41) with a movement of 113 loads (54.67 loads of choice, 29.87 loads of select, 5.61 loads of trim and 22.47 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat higher. Given that packers committed 90% of last week's trade to the nearby delivery leads me to believe that prices will be well supported moving forward as they're short bought.
FEEDER CATTLE:
Technically speaking Monday's market had little to offer the feeder cattle complex as the contracts ran lower all throughout the day's trade. After advancing the contracts aggressively late last week, traders seemed cautious as they approached this week's market which could be an afterthought of last week's aggressive push, or it could be precautionary measures being taken ahead of seeing what Friday's Cattle on Feed Report yields. Either way, traders gave back most of Friday's gain and seem to be looking for followed through fundamental support before they risk trading the market any higher. September feeders closed $3.12 lower at $254.25, October feeders closed $3.52 lower at $260.95 and November feeders closed $2.70 lower at $265.42. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week and at their midsession point, feeder steers and heifers were trading $2.00 to $5.00 higher while steer and heifer calves were selling $4.00 to $8.00 stronger. Feeder cattle supply over 600 pounds was 38%. The CME feeder cattle index 9/15/2023: down $0.64, $252,75.
LEAN HOGS:
The lean hog complex sank lower through Monday's trade despite the fact that the cash market saw a decent movement (especially for a Monday) and the fact that pork cutout values closed higher. October lean hogs closed $0.12 higher at $83.25, December lean hogs closed $0.67 lower at $74.42 and February lean hogs closed $1.02 lower at $77.75. It was again impressive to see widespread support across most of the cuts as the rib, the loin, the picnic and the belly all closed over $3.00 higher. Pork cutouts totaled 270.54 loads with 248.96 loads of pork cuts and 21.59 loads of trim. Pork cutout values: up $2.67, $100.96. Monday's slaughter is estimated at 485,000 head -- 18,000 head more than a week ago and 3,000 head more than a year ago. The CME lean hog index 9/14/2023: down $0.01, $86.93.
TUESDAY'S HOG CALL: Steady. Packers showed more interest in today's market than normal which could mean that they're needing to build inventory this week.
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