GENERAL COMMENTS:
After a turbulent earlier part of the week, the livestock complex is again higher as traders have found some technical stability in the marketplace. No more cash cattle sales have been noted, but some more clean-up trade will likely develop ahead of the week's end. December corn is up 1 1/2 cents per bushel and December soybean meal is down $3.30. The Dow Jones Industrial Average is up 54.24 points.
Thursday's export report shared that beef net sales of 8,300 metric tons (mt) for 2024 -- a marketing year low -- were down 46% from the previous week and 43% from the prior 4-week average. The three primary buyers were South Korea (2,500 mt), China (1,900 mt) and Japan (1,400 mt). Pork net sales of 26,500 mt for 2024 were down 55% from the previous week and 29% from the prior 4-week average. The three primary buyers were Mexico (9,000 mt), Japan (6,400 mt) and China (3,400 mt).
LIVE CATTLE:
After trading lower earlier this week, the live cattle complex has finally begun to find some stability after acknowledging that boxed beef prices had made their seasonal high and that fed cash cattle prices were going to trade lower this week. Thursday morning's export report was a little disappointing for the complex as just 8,300 mt were noted, but thankfully that doesn't seem to be having much negative effect on the market currently. August live cattle are down $0.05 at $182.20, October live cattle are up $0.27 at $183.47 and December live cattle are up $0.22 at $185.02. No bids are currently on the table but it's likely some more clean-up trade will develop before the week's over. Thus far this week, Southern live cattle have traded for mostly $188, which is $4.00 lower than last week's weighted average, and Northern dressed cattle sales have been marked at mostly $312, which is $2.00 lower than last week's weighted average.
Boxed beef prices are lower: choice down $0.68 ($323.37) and select down $0.70 ($303.24) with a movement of 80 loads (48.54 loads of choice, 21.74 loads of select, 5.72 loads of trim and 4.31 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex has finally found some sure footing in this week's market as the contracts are thankfully trading higher into Thursday's noon hour. Between seeing the live cattle contracts trade lower and the fed cash cattle market soften by $2.00 to $4.00, traders didn't seem to care that feeder cattle sales in the countryside were still strong; their only objective earlier in the week seemed to be working the feeder cattle market lower. But now that the live cattle contracts are again trading higher, feeders are eager to follow suit. August feeders are up $1.15 at $255.50, September feeders are up $1.20 at $255.77 and October feeders are up $0.77 at $255.57.
LEAN HOGS:
The lean hog complex is also higher as traders noted Thursday morning's slightly supportive export sales report and are thankful to see pork cutout values higher as well. It's likely cash prices will be softer this afternoon as packers were extremely aggressive early in the week in procuring hogs; but so long as the afternoon carcass price can stay positive, the market may have found some stable ground. August lean hogs are up $2.47 at $87.15, October lean hogs are up $1.47 at $69.80 and December lean hogs are up $0.75 at $63.00.
The projected CME Lean Hog Index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.31 with a weighted average price of $87.45, ranging from $85.00 to $89.50 on 1,170 head and a five-day rolling average of $88.86. Pork cutouts total 183.60 loads with 160.62 loads of pork cuts and 22.97 loads of trim. Pork cutout values: up $1.25, $95.67.
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