GENERAL COMMENTS:
It was a tremendous day for the cattle complex as the contracts charged higher through Thursday's end, as traders seem to rooting for the market's long-term bullish outlook to re-spark the marketplace's morale. Some cash cattle trade was reported in the North, but the South remains quiet with feedlots holding out for at least steady prices. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.13 with a weighted average price of $80.26, ranging from $74.00 to $83.00 on 3,735 head. December corn is up 1/2 cent per bushel and December soybean meal is down $3.90. The Dow Jones Industrial Average is up 84.36 points.
LIVE CATTLE:
It was a ball-of-fire kind of day for the live cattle complex as bear-pushers expected the market to trade lower after the aggressive gains in which Wednesday's market saw, but the live cattle complex continued to truck higher throughout Thursday's trade. The spot October contract closed at the second highest price point that the contract has seen, which has traders and feedlots managers wondering if the fall rally is going to begin already? October live cattle closed $0.95 higher at $183.65, December live cattle closed $1.00 higher at $187.50 and February live cattle closed $1.02 higher at $191.40. A light trade was reported in Nebraska at $290 Thursday afternoon with is fully steady with last week's weighted average. The South didn't see any cash cattle trade and asking prices remain firm at $180 plus.
Thursday's slaughter is estimated at 126,000 head, 2,000 head more than a week ago and 2,000 head less than a year ago.
Thursday's actual slaughter data shared that, for the week ending Aug. 26, steers averaged 906 pounds, which is 1 pound more than the previous week and 2 pounds heavier than a year ago. During the same week, heifers averaged 819 pounds, which is 1 pound less than the previous week and 2 pounds lighter than a year ago.
Boxed beef prices closed lower: choice down $1.91 ($311.66) and select down $1.44 ($286.17) with a movement of 167 loads (109.53 loads of choice, 32.96 loads of select, 2.96 loads of trim and 21.69 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given the added momentum that the live cattle contracts saw throughout Thursday's trade, feedlots will likely hold out for at least steady prices.
FEEDER CATTLE:
With the corn complex again closing mostly steady, the feeder cattle contracts were able to thrive through Thursday's end as the market loved seeing the momentum in the live cattle market. September feeders closed $2.42 higher at $255.57, October feeders closed $2.40 higher at $258.87 and November feeders closed $2.07 higher at $260.27. The spot October contract rounded out the day at a new contract high, which continues to beg the question of 2023: What's next, and how high can this rocket soar? At Torrington Livestock Auction in Torrington, Wyoming, compared to last week, yearling steers traded $2.00 to $4.00 higher while yearling heifers traded mostly steady. There was only a small package of calves right off the cow offered so no market trend was noted. Feeder cattle supply over 600 pounds was 85%. The CME Feeder Cattle Index for Sept. 6: not available at this time.
LEAN HOGS:
With the lean hog complex closed sharply lower Wednesday afternoon, the contracts could trade mildly higher throughout Thursday's market without running into any pressure. Yes, cash prices did close higher Thursday afternoon, but less than 4,000 head traded, which isn't anything for the hog complex. Pork cutout values closed sharply lower as the $19.77 drop in the belly combined with the $7.27 drop in the ham left little room for the carcass price to even hope that it could close higher. October lean hogs closed $0.95 higher at $82.82, December lean hogs closed $0.82 higher at $75.27 and February lean hogs closed $0.70 higher at $79.15. Pork cutouts totaled 327.66 loads with 290.60 loads of pork cuts and 37.07 loads of trim. Pork cutout values: down $4.12, $94.21. Thursday's slaughter is estimated at 460,000 head, 9,000 head less than a week and 15,000 head less than a year ago. The CME Lean Hog Index for Sept. 5: down $0.55, $86.01.
FRIDAY'S HOG CALL: Lower. Given that packers aren't showing much interest in the cash market after having bought somewhat aggressively on Wednesday, it's likely that the market will see little interest on Friday.
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