GENERAL COMMENTS:
It was a doggish day for the livestock complex as traders kept a safe distance from all three of the markets and let them trade lower through Thursday's end. Some cash cattle trade did develop, and prices remained steady with last week's weighted average.
Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.71 with a weighted average price of $78.0 on 763 head. December corn is down 7 cents per bushel and December soybean meal is down $7.00. The Dow Jones Industrial Average is down 370.53 points.
LIVE CATTLE:
It was a dreary day for the live cattle complex as the contracts closed anywhere from $1.00 to $2.00 lower. It's not from a lack of fundamental support that the contracts traded lower, but rather from a gloomy outside day which kept traders hesitant and skeptical market participants all throughout Thursday's hours. October live cattle closed $1.80 lower at $184.97, December live cattle closed $2.02 lower at $189.50 and February live cattle closed $1.77 lower at $194.07. Some cash cattle trade started to develop shortly after the noon hour and thus far prices have remained steady this week. Southern live cattle have been trading for $183 and Northern dressed cattle have been trading for $292 -- both of which are steady prices with last week's weighted average. Asking prices in the South remain firm around $185 to $186 and in the North at $293 plus. More cattle will likely need to trade on Friday. Thursday's slaughter is estimated at 124,000 head - steady with a week ago and 4,000 head less than a year ago.
Thursday's actual slaughter data shared that for the week ending 9/9/2023 steers averaged 917 pounds which is nine pounds heavier than the previous week and three pounds more than the same week a year ago. During the same week heifers averaged 825 pounds which is three pounds more than the previous week and five pounds less than a year ago.
Beef net sales of 13,700 mt for 2023 were up noticeably from the previous week and up 15% from the prior 4-week average. The three largest buyers were Japan (3,700 mt), South Korea (3,100 mt) and China (2,500 mt).
Boxed beef prices closed higher: choice up $0.67 ($301.93) and select up $0.32 ($279.00) with a movement of 132 loads (78.50 loads of choice, 25.67 loads of select, 16.22 loads of trim and 11.14 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that packers have already been able to buy cattle in both regions, it's likely that Friday's trade will remain steady with today's prices.
FEEDER CATTLE:
The feeder cattle complex closed lower alongside the other livestock markets as it simply couldn't draw in the interest of traders. The corn market didn't add any pressure as it too closed $0.06 to $0.07 lower in its nearby contracts. Yes, cash cattle prices held steady this week from the early sales noted, but that wasn't enough support with the live cattle contracts closing lower to boost the morale in the feeder cattle complex. September feeders closed $0.90 lower at $253.27, October feeders closed $2.80 lower at $257.77 and November feeders closed $2.87 lower at $262.70.
At Ogallala Livestock Auction in Ogallala, Nebraska compared to last week heifers traded $4.00 to $8.00 higher. Demand was called good throughout the entire sale but heifers that were NHTC verified sold anywhere from $4.00 to $13.00 more. There weren't enough steers to establish an accurate test. Feeder cattle supply over 600 pounds was 98%. The CME feeder cattle index 9/20/2023: up $0.67, $254.09.
LEAN HOGS:
Like the other livestock markets, the lean hog complex took a beating as it traded through Thursday's market. The real question that's got to be answered for the hog sector however is: was Thursday's weakness because traders over did their upward run or because of the economic pressure of outside markets? It's likely that the market won't come to a solid answer by Friday as traders will likely remain skeptical even though prices are back below resistance levels. October lean hogs closed $2.82 lower at $82.95, December lean hogs closed $3.75 lower at $74.47 and February lean hogs closed $3.15 lower at $77.75. Pork cutouts totaled 295.88 loads with 254.76 loads of pork cuts and 41.12 loads of trim. Pork cutout values: down $0.47, $98.75. Thursday's slaughter is estimated at 484,000 head - steady with a week ago and 2,000 head more than a year ago. The CME lean hog index 9/19/2023: up $0.09, $86.67.
Pork net sales of 30,200 mt for 2023 were up 31% from the previous week and 1% from the prior 4-week average. The three largest buyers were Mexico (13,500 mt), South Korea (3,600 mt) and Canada (3,300 mt).
FRIDAY'S HOG CALL: Lower. Given that Thursday's market hardly saw any trade develop, it's unlikely that Friday's market will see much better interest.
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