GENERAL COMMENTS:
While the cattle contracts leap into action, the lean hog complex is back to trading lower as traders see mixed support from both the cash hog market and pork cutout values. The cash cattle market remains quiet with no business having developed at this point. December corn is down 1/2 cent per bushel and December soybean meal is up $2.40. The Dow Jones Industrial Average is down 224.14 points.
LIVE CATTLE:
The live cattle complex has caught the attention of traders as they're willingly advancing the nearby contracts by more than a $1.00 and are continuing to support the deferred contracts modestly. So long as beef demand continues to show relatively strong support this week, there's a strong chance that traders continue to support the contracts ahead of seeing what the week's cash cattle trade pans out to be. No cash cattle trade has been reported at this point, and it's likely that trade is delayed for at least another day. Asking prices in the South are noted at $180 plus but asking prices in the North remain elusive. October live cattle are up $1.67 at $181.62, December live cattle are up $1.52 at $185.67 and February live cattle are up $1.25 at $189.72.
Boxed beef prices are mixed: choice up $0.14 ($315.62) and select down $0.16 ($289.38) with a movement of 72 loads (32.39 loads of choice, 15.62 loads of select, 5.97 loads of trim and 18.41 loads of ground beef).
FEEDER CATTLE:
As corn prices trade mostly steady, the feeder cattle complex is rallying off the momentum of continued strong feeder cattle sales in the countryside and off the momentum of the live cattle complex's higher trend. September feeders are up $1.12 at $252.50, October feeders are up $1.37 at $255.67 and November feeders are up $1.22 at $257.42. As long as we continue seeing steady corn prices and higher prices across the live cattle contracts, the feeder cattle complex should have not any problem closing higher Wednesday afternoon.
LEAN HOGS:
While the cattle complex trades higher, the lean hog contracts are back to drifting lower as traders want to see more fundamental support before they advance the contracts anymore. Pork cutout values have been relatively supportive as of late, but the cash hog market continues to be a problem with little trade developing. October lean hogs are down $1.37 at $81.80, December lean hogs are down $0.87 at $74.20 and February lean hogs are down $0.52 at $78.32.
The projected lean hog index for Sept. 5 is down $0.55 at $86.01, and the actual index for Sept. 1 is down $1.21 at $86.56. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.30 with a weighted average price of $79.09, ranging from $77.00 to $80.00 on 740 head and a five-day rolling average of $79.85. Pork cutouts total 187.41 loads with 161.80 loads of pork cuts and 25.61 loads of trim. Pork cutout values: up $0.05, $98.92.
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