GENERAL COMMENTS:
It was a mixed day for the livestock complex as early on the contracts traded fully higher, but by Tuesday's close the market's tone was dominated by mixed emotions. No cash cattle trade developed throughout the day, and bids and asking prices are still elusive. Hog prices averaged $78.19 on the Daily Direct Afternoon Hog Report, ranging from $72.00 to $80.00 on 1,794 head. December corn is up 4 1/2 cents per bushel and December soybean meal is down $2.00. The Dow Jones Industrial Average is down 164.40 points.
LIVE CATTLE:
The live cattle complex rounded out the day mostly higher although its nearby contracts (October and December) did close lower. The market slid into a sideways trading range last week and without seeing how this week's cash cattle market is going to pan out, traders elected to play it safe in the nearby contracts while they left the deferred months to continue to trade higher on the market's strong fundamental outlook. October live cattle closed $0.20 lower at $179.95, December live cattle closed $0.02 lower at $184.15 and February live cattle closed $0.15 higher at $188.47. New showlists appear to be mixed, higher in Texas, somewhat lower in Nebraska/Colorado and lower in Kansas. Tuesday's slaughter is estimated at 128,000 head - 3,000 head more than a week ago and 1,000 head more than a year ago. Monday's slaughter is estimated at 3,000 head. No bids or asking prices are available at this point.
Last week, Northern dressed cattle traded from $288 to $295, but mostly at $290, which is $3.00 lower than the previous week. Southern live cattle traded at mostly $178 to $179, which is mostly steady to $1.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 68,750 head. Of that, 65% (44,538 head) were committed to the nearby delivery, while the remaining 35% (24,212 head) were committed to the deferred delivery.
Boxed beef prices closed mixed: choice up $0.99 ($315.48) and select down $0.75 ($289.54) with a movement of 109 loads (68.58 loads of choice, 28.04 loads of select, zero loads of trim and 11.92 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. The saga of mostly steady cash prices is likely to continue this week as feedlots desire more money and packers want to keep their expenses as minimal as possible.
FEEDER CATTLE:
The feeder cattle complex grew skeptical of closing out the day fully higher, so the nearby contracts drew back while the market's deferred contracts kept with their rallying nature through the day's end. The combination of seeing some of the live cattle contracts close lower amid slightly higher tones in the corn complex ultimately was the reason behind why the nearby contracts ended the day slightly lower. Even so, the market still has its strong underlying tone as fundamental demand is excellent and with some parts of the country receiving more moisture and a break from the heat, feeders could see even more demand in the nearing weeks. September feeders closed $0.47 lower at $251.37, October feeders closed $0.35 lower at $254.30 and November feeders closed $0.17 lower at $256.20. The CME feeder cattle index 9/4/2023: up $0.93, $247.81.
LEAN HOGS:
The lean hog complex closed mostly lower although the market's spot October contract and nearby December contracts were able to keep their elevated position while the rest of the contracts drifted slightly lower. Even though the belly continues to be a wild, sporadic cut that swings the carcass price drastically, it helped prices close higher this afternoon. The belly closed $54.51 higher, and then was followed by less dramatic gains as the rib gained $5.41 and the ham closed $2.31 higher. The loin, butt and picnic all saw gains over $1.00 as well -- so all in all, even though the belly was the carcass price's biggest drive, pork demand was evident in this afternoon's close. October lean hogs closed $0.12 higher at $83.17, December lean hogs closed $0.47 higher at $75.07 and February lean hogs closed $0.17 lower at $78.85. Pork cutouts total 285.79 loads with 257.67 loads of pork cuts and 28.11 loads of trim. Pork cutout values: up $11.13, $104.83. Tuesday's slaughter is estimated at 482,000 head - 6,000 head more than a week ago and 5,000 head less than a year ago. Monday's slaughter is estimated at 2,000 head. The CME lean hog index 8/31/2023: down $1.49, $87.77.
WEDNESDAY'S HOG CALL: Slightly higher. Packers have been careful not to overbuy or overspend in the cash hog market, but given that pork demand is seeing some support, cash prices could be higher this Wednesday.
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