Tuesday Midday Livestock Market Summary - Outside Economic Pressure Sends Cattle Lower

GENERAL COMMENTS:

The cattle contracts are enduring a tough day as the market can't seem to gather any interest from traders. The lean hog contracts are trading lower too but aren't seeing near the pressure that the cattle contracts currently are. December corn is down 3 cents per bushel and December soybean meal is down $1.10. The Dow Jones Industrial Average is down 299.10 points.

LIVE CATTLE:

The live cattle complex is seeing significant losses across the futures complex this morning as its contracts can't seem to attract traders' interest whatsoever. Right now, the spot December contract is being pressured to the point where support levels in the current sideways trading range are being pressured and closing below support could alarming to traders. The biggest bear seeming to add pressure to the market at this point continues to be our economy's weakened state and the looming concern and likelihood that interest rates will continue to creep higher. October live cattle are down $2.10 at $184.87, December live cattle are down $2.60 at $188.62, and February live cattle are down $2.52 at $193.35. NO cash cattle trade has developed yet and it's likely that the market won't see much interest until Wednesday or later.

Boxed beef prices are lower: choice down $0.28 ($301.20) and select down $0.72 ($279.73) with a movement of 77 loads (41.21 loads of choice, 21.72 loads of select, 3.46 loads of trim and 10.83 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is trading anywhere from $1.00 to $4.00 lower as the market comes up short of finding any support thus far in Tuesday's complex. October feeders are down $3.82 at $255.00, November feeders are down $4.60 at $258.10 and January feeders are down $4.22 at $261.37. Even though corn prices are trending lower too, it's unlikely that the market closes higher as there's simply too much outside pressure hovering over the cattle complex at this point to expect anything different.

LEAN HOGS:

The lean hog complex was more aggressive at the day's start than what it's currently being as the market nears Tuesday's noon hour, but without virtually any support from the cash market it's hard for traders to turn the contracts higher on just support from cutouts. Also adding a little pressure to the market is the fact that on Thursday another Quarterly Hogs and Pigs report is set to be released. The report should add clarity to the market long term in regard to what to expect after Prop 12, but with big changes coming to the market, it does feel like a big elephant in the room. October lean hogs are down $0.02 at $81.50, December lean hogs are down $0.40 at $72.12, and February lean hogs are down $0.40 at $75.70.

The projected lean hog index for 9/25/2023 is down $0.39 at $86.31, and the actual index for 9/22/2023 is down $0.38 at $86.70. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However, we can see that only 405 head have traded this morning and that the five-day rolling average now sits at $78.50. Pork cutouts total 192.10 loads with 169.27 loads of pork cuts and 22.82 loads of trim. Pork cutout values: up $0.95, $99.81.