General Comments
Even though there are still concerns about whether a government shutdown will occur, and about out economic state as a nation, the livestock contracts have elected to look past those pressures this morning as all three of the markets are trading higher. Heading into this afternoon be on the lookout for the Quarterly Hogs and Pigs Report as well as Thursday's actual slaughter data. December corn is up 4 3/4 cents per bushel and December soybean meal is up $3.50. The Dow Jones Industrial Average is up 170.30 points.
LIVE CATTLE
Like the feeder cattle market, the live cattle complex is back to trading higher as traders find the market's downturn endured earlier this week enough for the time being. No more cash cattle trade has developed, but it's likely that more will pop up in small increments here and there before the week's end. Thus far this week Southern live cattle have traded for $183 which is steady with last week's weighted average, and Northern dressed cattle have traded for mostly $290 to $292 which is $1.00 to $2.00 lower than last week's weighted average. Asking prices for cattle left on showlists remain at $183 plus in the South and $292 plus in the North. Heading into this afternoon be on the lookout for Thursday's actual slaughter data as last week steer prices jumped nine pounds from the week before. October live cattle are up $1.85 at $186.75, December live cattle are up $2.57 at $190.75 and February live cattle are up $2.47 at $194.87.
Beef net sales of 17,700 mt for 2023 were up 29% from the previous week and 42% from the prior 4-week average. The three primary buyers were Japan (3,900 mt), South Korea (3,500 mt) and China (3,200 mt).
Boxed beef prices are mixed: choice up $0.53 ($301.48) and select down $0.29 ($278.22) with a movement of 70 loads (31.00 loads of choice, 23.92 loads of select, 3.03 loads of trim and 12.39 loads of ground beef).
FEEDER CATTLE
After feeling the market's pressure throughout the earlier part of the week, the feeder cattle contracts are now back to trading higher as traders believe the downside endured has been enough at this point. Thankfully the market still sits with tremendous fundamental support which is helping alleviate some of the technical, economic and political pressures that continue to loom over the marketplace. October feeders are up $2.37 at $254.62, November feeders are up $2.87 at $257.67 and January feeders are up $2.82 at $260.22.
LEAN HOGS
The lean hog complex is rallying into Thursday's noon hour as the market anxiously awaits this afternoon's Hogs and Pigs Report. The report is expected to be favorable to the market as sows have been culled and numbers are expected to remain depleted well into 2024. October lean hogs are up $1.62 at $83.72, December lean hogs are up $2.95 at $75.72 and February lean hogs are up $2.62 at $78.90. The report will be released after today's close which likely means that traders will react to the report first thing Friday morning.
The projected lean hog index for 9/27/2023 is unchanged at $86.14, and the actual index for 9/26/2023 is down $0.17 at $86.14. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.64 with a weighted average price of $76.08, ranging from $72.00 to $77.00 on 1,776 head and a five-day rolling average of $77.10. Pork cutouts total 152.30 loads with 135.22 loads of pork cuts and 17.08 loads of trim. Pork cutout values: down $1.56, $96.20.
Pork net sales of 27,400 mt for 2023 were down 9% from the previous week and 6% from the prior 4-week
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