GENERAL COMMENTS:
The livestock complex is trading higher into Thursday's afternoon as traders see opportunities amid steady corn prices. Still no cash cattle trade has developed and, at this point, it's looking like trade could develop on Friday potentially. December corn is up 1 cent per bushel and December soybean meal is down $2.30. The Dow Jones Industrial Average is up 106.03 points.
LIVE CATTLE:
The live cattle complex is continuing to etch higher, rallying off the strong move made Wednesday afternoon. The cash cattle market has yet to see any substantial trade develop and given the added support of the live cattle market's strength, feedlots could be emboldened to hold out for fully steady prices. Asking prices in the South remain firm at $180-plus but are still not established in the North. Given how quiet the market is at this point, it's seeming like trade could wait to develop until Friday unless packers show better interest and offer up steady bids from the get-go. October live cattle are up $0.72 at $183.42, December live cattle are up $0.65 at $187.15 and February live cattle are up $0.70 at $191.07.
Boxed beef prices are lower: choice down $2.65 ($310.92) and select down $1.13 ($286.48) with a movement of 108 loads (63.83 loads of choice, 22.70 loads of select, 2.91 loads of trim and 18.09 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts aren't messing around Thursday as some of the nearby contracts break to new contract highs given the continued supportive nature of the markets with higher trends continuing to be seen in the live cattle complex and steady tones throughout the corn sector. September feeders are up $2.20 at $255.35, October feeders are up $2.15 at $258.60 and November feeders are up $1.70 at $259.90. So long as this relationship continues (supportive live cattle market, steady corn prices), the feeder cattle complex should have absolutely no issue maintaining these levels. And if the cash cattle market sees steady to somewhat higher trade, then a bold move may even be in the works.
LEAN HOGS:
After closing lower Wednesday afternoon, the lean hog complex is back to trading modestly higher as traders aren't in immediate danger of coming up against resistance pressure. It's not likely that the move will grow much more bullish as fundamentally the market isn't seeing the support it needs in Thursday's trade with only 175 hogs having been traded in the cash market this morning and pork cutout values lower. October lean hogs are up $1.07 at $83.00, December lean hogs are up $1.12 at $75.57 and February lean hogs are up $0.82 at $79.30.
The projected lean hog index for Sept. 6 is up $0.18 at $86.19, and the actual index for Sept. 5 is down $0.55 at $86.01. Pork cutouts total 196.48 loads with 164.85 loads of pork cuts and 31.63 loads of trim. Pork cutout values: down $0.16, $98.17. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However, we can see that only 175 head have traded and that the market's five-day rolling average now sits at $79.75.
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