GENERAL COMMENTS:
It was a doggish day for the livestock complex as a spike in the number of jobs available in the U.S. jumped sharply higher and will likely ensure that interest rates are increased later this month. The feeder cattle complex too the brunt of Tuesday's blow as its contracts closed anywhere from $4.00 to $5.00 lower. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $3.18 with a weighted average price of $71.24 on 5,474 head. December corn is down 1 1/4 cents per bushel and December soybean meal is down $2.60. The Dow Jones Industrial Average is down 430.97 points.
LIVE CATTLE:
The live cattle complex struggled through Tuesday's market as outside economic pressures continue to concern traders and have a bearish affect on the overall futures complex. Unfortunately, it wasn't only the futures complex that closed lower, as the cash cattle market also saw some trade develop at cheaper money. A light round of trade was reported in the South at $182, which is $1.00 lower than last week's weighted average. And some light trade was also reported in the North at $183, which is also $1.00 lower than last week's weighted average. More trade will occur before the week's end, but packers jumped at the opportunity to buy some cattle while the futures complex was pressured. October live cattle closed $2.30 lower at $182.12, December live cattle closed $2.70 lower at $185.65 and February live cattle closed $2.87 lower at $190.30.
Tuesday's slaughter is estimated at 128,000 head, steady with a week ago and 2,000 head less than a year ago.
Boxed beef prices closed lower: choice down $3.01 ($300.07) and select down $1.39 ($275.59) with a movement of 130 loads (59.36 loads of choice, 34.89 loads of select, 15.17 loads of trim and 20.51 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Given that some light trade has now developed in both regions, it's likely that the week's weighted averages have been set.
FEEDER CATTLE:
It was a painstaking day for the feeder cattle complex as its market took the brunt of Tuesday's fall for the livestock sector. Throughout the day, the market was pushed lower as a sharp increase in the number of job listings has a negative effect on the marketplace. Unfortunately, it likely means that interest rates will inevitably be increased later this month, which is why the feeder cattle complex reacted so gravely. October feeders closed $4.72 lower at $248.60, November feeders closed $5.35 lower at $250.35 and January feeders closed $5.07 lower at $254.27. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers sold $2.00 to $5.00 lower and feeder heifers traded $3.00 to $6.00 lower. Demand was noted as moderate to good for feeder cattle, but the quality of the cattle was mostly plain. Steer and heifer calves both traded steady to $5.00 higher. Feeder cattle supply over 600 pounds was 60%. The CME Feeder Cattle Index for Oct. 2: not available at this time.
LEAN HOGS:
The lean hog complex traded lower like the cattle contracts did, but its market wasn't pressured as much as it was on Monday. The question for the lean hog complex continues to be: Where is the new bottom going to land for this trading range? The market again closed lower Tuesday afternoon, but prices haven't hit the long-term support threshold set in late May. The cash hog market did indeed close lower, but today's volume was slightly better. Pork cutout values were merely no help as the big $9.89 drop in the belly pulled the carcass prices lower. October lean hogs closed $0.12 higher at $79.97, December lean hogs closed $0.42 lower at $69.07 and February lean hogs closed $1.20 lower at $72.72. Pork cutouts totaled 320.47 loads with 281.32 loads of pork cuts and 39.15 loads of trim. Pork cutout values: down $1.43, $94.61. Tuesday's slaughter is estimated at 487,000 head, steady with a week ago but 2,000 head more than a year ago. The CME Lean Hog Index for Sept. 29: down $0.74, $84.84.
WEDNESDAY'S HOG CALL: Steady. Packers are being cautious buyers and it's not likely that they'll dive aggressively enough into the cash market to push prices higher.
No comments:
Post a Comment