GENERAL COMMENTS:
Traders are continuing to keep an arm's distance from the cattle complex as Monday's noon hour rolls around despite receiving last Friday's supportive Cattle on Feed report. Meanwhile, the lean hog complex is trading higher as the contracts are now free from resistance pressure and midday pork cutout values are higher. December corn is up 3/4 cent per bushel and December soybean meal is up $1.50. The Dow Jones Industrial Average is up 19.28 points.
LIVE CATTLE:
The live cattle complex is electing to keep its cautious but supportive stance as the market is trading merely sideways into Monday's noon hour. October live cattle are down $0.25 at $186.82, December live cattle are down $0.12 at $191.22, and February live cattle are up $0.30 at $195.85. Last Friday's Cattle on Feed Report should be viewed as a supportive finding that the cattle market can add to its already strong fundamental foothold. With fewer cattle on feed than a year ago, and fewer placements added in August, tight supplies amid strong demand should bode well for the market moving forward.
Last week's trade started to develop Wednesday afternoon and trickled in here and there through Friday. Northern dressed cattle traded for $285 to $293, but mostly at $292 which is steady with the previous week's weighted average. Southern live cattle traded for $182 to $186, but mostly at $183 which is also steady with the previous week's weighted average. Last week's negotiated cash cattle trade totaled 87,245 head. Of that 77% (67,449 head) were committed to the nearby delivery, while the remaining 23% (19,796 head) were committed to the deferred delivery.
Boxed beef prices are mixed: choice down $1.93 ($301.40) and select up $1.19 ($281.62) with a movement of 36 loads (22.47 loads of choice, 12.03 loads of select, zero loads of trim and 1.85 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading mostly lower into Monday's noon hour as the market longs to attract the interest of traders. One would have thought that Friday's Cattle on Feed report would have been enough encouraging news to entice some traders into turning the contracts higher Monday morning, but without the support of a higher trade live cattle market, traders remain reserved at this point. September feeders are down $0.65 at $253.45, October feeders are down $1.00 at $258.15 and November feeders are down $0.97 at $262.62.
LEAN HOGS:
After rounding out last week's market starkly lower, the lean hog complex is back to trading mildly higher. With the complex now away from resistance pressure, traders are again free to support the contracts if they find enough fundamental support in the market -- and thankfully with midday pork cutout values up nearly $3.00, that support is there. On Thursday the market will see another Quarterly Hogs and Pigs report released with could also lend support to traders, and clarify the market's trajectory, nonetheless. October lean hogs are up $0.07 at $81.60, December lean hogs are up $0.42 at $72.60, and February lean hogs are up $0.85 at $76.20.
The projected lean hog index for 9/22/2023 is down $0.38 at $86.70, and the actual index for 9/21/2023 is down $0.09 at $87.08. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.01 with a weighted average price of $77.94, ranging from $75.00 to $79.00 on 1,739 head and a five-day rolling average of $78.21. Pork cutouts total 132.55 loads with 114.64 loads of pork cuts and 17.61 loads of trim. Pork cutout values: up $2.96, $100.22.
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