GENERAL COMMENTS:
It was a mixed day for the livestock complex as there was hope early on that the announcement from Chairman Powell that interest rates could potentially be lowered in September would help the commodity markets' moral, which it did in the lean hog and feeder cattle markets, but the live cattle complex was more worried about the afternoon's Cattle on Feed report. December corn is down 2 1/2 cents per bushel and December soybean meal is up $0.40. The Dow Jones Industrial Average is up 462.30 points.
From Friday-to-Friday livestock futures scored the following changes: August live cattle down $0.22, October live cattle down $2.60; August feeder cattle down $0.20, September feeder cattle down $0.92; October lean hogs up $5.47, December lean hogs up $3.53; September corn down $0.03, December corn down $0.02.
Friday's Cold Storage Report shared that total red meat supplies in freezers were down 3% from the previous month and down 3% from last year. Total pounds of beef in freezers were down slightly from the previous month and down 1% from last year. Frozen pork supplies were down 5% from the previous month and down 4% from last year. Stocks of pork bellies were down 30% from last month and down 17% from last year.
LIVE CATTLE:
There was some hope that the hint of cheaper interest rates could help the live cattle complex close higher Friday afternoon, but all in all the market grew skeptical about the afternoon's Cattle on Feed report and ended up closing mostly lower. October live cattle closed $0.20 lower at $175.70, December live cattle closed $0.32 lower at $175.20 and February live cattle closed $0.17 lower at $176.47. The cash cattle market didn't see much action through Friday's trade as largely the week's business was done earlier in the week. Throughout the week Southern live cattle were marked at mostly $183 which is $2.00 lower than last week's weighted average and Northern dressed cattle traded at mostly $293 which is $5.00 lower than last week's weighted average.
Friday's slaughter is estimated at 113,000 head – 5,000 head less than a week ago and 8,000 head less than a year ago. Saturday's slaughter is projected to be around 11,000 head. The week's total slaughter is estimated at 608,000 head -- 6,000 head more than a week ago and 18,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $1.35 ($317.34) and select down $1.57 ($300.46) with a movement of 126 load (87.01 loads of choice, 14.75 loads of select, 8.67 loads of trim and 15.50 loads of ground beef).
MONDAY'S CATTLE CALL: Lower. With the board's weakness and continued pressure, cash prices will likely trend lower.
FEEDER CATTLE:
Even with a Cattle on Feed report set to be released after the day's closing bell, traders continued to support the nearby feeder cattle complex through Friday's end as they found it promising that Chairman Powell shared in a statement Friday morning that interest rates could be lowered in their September meeting.
August feeder cattle closed $0.60 higher at $242.57, September feeder cattle closed $0.37 higher at $238.57 and October feeder cattle closed $0.12 higher at $234.37. This afternoon's Cattle on Feed report will likely be found as bearish to traders Monday morning as placements came in 6% higher than a year ago.
The Oklahoma Weekly Cattle Auction Summary shared that compared to last week, feeder steers sold $6.00 to $11.00 lower, and steer calves sold $18.00 to $20.00 lower. Heifers traded $4.00 to $9.00 back. Slaughter cows and bulls sold $1.00 lower. Feeder cattle supply over 600 pounds was 63%. The CME feeder cattle index 8/22/2024: down $0.97, $241.70.
LEAN HOGS:
It was a stellar day for the lean hog complex as the market was able to keep with its upward trend through Friday's closing bell. October lean hogs closed $0.92 higher at $80.55, December lean hogs closed $0.47 higher at $70.75 and February lean hogs closed $0.47 higher at $73.82. What is especially promising about the market's performance throughout the day was that the spot October contract was able to rally upon what Thursday's market accomplished. And with the complex now having rallied to the point where the market has broken outside of its previous sideways trading range, it's anyone's guess at this point how high the complex could go. Demand will likely be the biggest determining factor of the market's current rally. Hog prices closed lower on the Daily Direct Afternoon Hog report, down $2.60 with a weighted average price of $80.76. Pork cutouts totaled 278.10 loads with 236.74 loads of pork cuts and 41.37 loads of trim. Pork cutout values: up $2.62, $99.05. Friday's slaughter is estimated at 479,000 head -- 15,000 head more than a week ago and 14,000 head more than a year ago. Saturday's slaughter is projected at 96,000 head. The CME lean hog index 8/21/2024: down $0.38, $88.83.
MONDAY'S HOG CALL: Lower. Packers rarely show much interest in the cash market on Mondays.
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