GENERAL COMMENTS:
The job openings report has had a bearish effect on the livestock complex Tuesday as the news will likely ensure an increase in interest rates at the end of the month. The cattle complex is taking the news the hardest, but the lean hog market is trading mostly lower as well. December corn is down 2 1/4 cents per bushel and December soybean meal is down $3.10. The Dow Jones Industrial Average is down 381.87 points.
LIVE CATTLE:
The live cattle complex isn't able to minimize the pressure looming over the entire futures complex thanks to the hike in job openings in the U.S. The entire complex is trading lower and it's likely that this bearish attitude sticks with the market through the day's end and potentially even through the upcoming trading days. October live cattle are down $1.62 at $182.80, December live cattle are down $2.07 at $186.27 and February live cattle are down $2.17 at $191.00. The cash cattle market hasn't seen any interest arise and with the bearish energy whirling throughout the market, packers will likely remain patient and wait to offer bids until later in the week as they hope this will pressure feedlots into selling more easily.
Boxed beef prices are lower: choice down $0.46 ($302.62) and select down $0.23 ($276.75) with a movement of 54 loads (20.94 loads of choice, 18.66 loads of select, zero loads of trim and 14.19 loads of ground beef).
FEEDER CATTLE:
If you have a weak stomach, I don't recommend checking in on the feeder cattle complex Tuesday. The market is seeing $4.00 to $5.00 losses across its market as traders bear down after seeing a spike in U.S. job openings. This news won't likely sit well with the Federal Reserve and most likely ensures an interest rate increase, which is where the feeder cattle market's queasiness comes into play as buyers are expected to be buying more calves this month as the fall run is officially underway. October feeders are down $4.70 at $248.62, November feeders are down $4.87 at $250.82 and January feeders are down $4.52 at $254.87.
LEAN HOGS:
Out of all the livestock contracts, the lean hog market is weathering the news of more job openings being available than any of the other markets. This could partly be because Monday was especially tough on the complex as the market gapped lower and continues to dig deeper as the market looks to establish a new bottom for its trading range. Either way, with the market enduring immense technical pressure, it would be ideal if fundamental support came in to encourage the market, but at this point cash prices have been lousy this week and pork cutouts have been mixed. October lean hogs are up $0.35 at $80.20, December lean hogs are down $0.77 at $68.75 and February lean hogs are down $1.62 at $72.30.
The projected lean hog index for Oct. 2 is down $0.29 at $84.55, and the actual index for Sept. 29 is down $0.74 at $84.84. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.74 with a weighted average price of $70.63, ranging from $67.00 to $74.00 on 2,415 head and a five-day rolling average of $74.78. Pork cutouts total 187.44 loads with 155.27 loads of pork cuts and 32.17 loads of trim. Pork cutout values: up $0.56, $96.60.
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