GENERAL COMMENTS:
The cattle contracts are trading higher Thursday as traders see the market's fundamental base continue to hold true and strong. Still no cash cattle trade has developed and with little interest sparking the market at this point, trade could be delayed until Friday. December corn is down 1/4 cent per bushel and December soybean meal is up $5.40. The Dow Jones Industrial Average is up 277.20 points.
LIVE CATTLE:
The live cattle complex is back to trading positively as the market fronts a fairly aggressive $1.00 rally heading into Thursday's noon hour. Still, no substantial cash cattle trade has developed, and it's looking like the bulk of the week's business could even be delayed until Friday at this point given that little interest has developed. There's a single bid being offered in Nebraska at $290 but, at this point, no feedlots are jumping at its appearance. Asking prices in the South are noted at $183 plus and still are not fully established in the North. October live cattle are up $1.40 at $184.55, December live cattle are up $1.47 at $189.35 and February live cattle are up $1.42 at $193.80.
Beef net sales of 6,200 mt for 2023 were down 48% from the previous week and 56% from the prior four-week average. The three largest buyers were China (2,000 mt), Mexico (1,300 mt) and Japan (600 mt).
Boxed beef prices are mixed: choice down $1.27 ($306.28) and select up $0.91 ($288.10) with a movement of 70 loads (50.98 loads of choice, 10.86 loads of select, zero loads of trim and 7.84 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading higher with the market's deferred contracts seeing the biggest, stoutest gains. All market participants seem to understand more clearly that the lack of profitability in the marketplace is going to keep producers from building back the cowherd as quickly as they did back in 2015-16. With the U.S. cowherd not expected to bounce back as quickly, fewer cows should continue to allow for stronger feeder cattle prices so long as beef demand remains strong. September feeders are up $0.77 at $254.27, October feeders are up $1.42 at $260.47 and November feeders are up $2.35 at $263.92.
LEAN HOGS:
The lean hog complex may have exhausted its upward abilities for the week as the market is again trading lower. October lean hogs are down $0.02 at $83.89, December lean hogs are down $0.40 at $75.95 and February lean hogs are down $0.47 at $79.70. Pork exports were fairly supportive this morning, but that's seeming to lend the market little support at this point.
The projected lean hog index for Sept. 13 is up $0.46 at $86.94, and the actual index for Sept. 12 is up $0.35 at $86.48. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.72 with a weighted average price $78.32, ranging from $77.50 to $80.00 on 1,783 head and a five-day rolling average of $79.04. Pork cutouts total 178.10 loads with 158.97 loads of pork cuts and 19.13 loads of trim. Pork cutout values: up $0.57, $98.79.
Pork net sales of 23,100 mt for 2023 were down 12% from the previous week and 26% from the prior four-week average. The three largest buyers were Mexico (6,300 mt), Canada (4,500 mt) and Japan (4,200 mt).
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