GENERAL COMMENTS:
It was a tough day for the livestock complex as the market ended on a bitter note by Friday's end with all three markets closing lower. Heading into Monday, traders hope that fundamental demand will be strong and that slowly market confidence can be rebuilt. December corn is down 4 1/2 cents per bushel and December soybean meal is down $5.60. The Dow Jones Industrial Average is up 96.70 points.
From Friday-to-Friday livestock futures scored the following changes: August live cattle down $1.45, October live cattle down $2.85; August feeder cattle down $3.72, September feeder cattle down $2.10; October lean hogs up $1.10, December lean hogs up $0.92; September corn down $0.06, December corn down $0.02.
LIVE CATTLE:
To put it bluntly, Friday's trade was plum terrible for the live cattle complex. The futures market cratered lower and ended up closing far below the market's 100-day moving average, and the cash cattle market was an utter disappointment. It will be interesting to see where the market's weighted averages fall for the week as the cash cattle market traded in a widespread -- especially in the North. For the most part, however, Northern dressed cattle were marked at $298 which is $6.00 lower than last week's weighted average and Southern live cattle were sold at mostly $185 which is $1.00 to $2.00 lower than last week's weighted average. It appears traders saw the likelihood that the cash cattle market was going to trade lower and panicked and turned the complex lower as cash support was as strong as had hoped for. October live cattle closed $2.45 lower at $178.30, December live cattle closed $2.50 lower at $178.12 and February live cattle closed $2.62 lower at $179.12.
Friday's slaughter is estimated at 118,000 head -- 14,000 head more than a week ago and steady with a year ago. Saturday's slaughter is projected to be around 8,000 head. The week's total slaughter is estimated at 602,000 head -- 11,000 head more than a week ago and 14,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.51 ($317.45) and select up $0.56 ($302.59) with a movement of 116 loads (77.28 loads of choice, 21.27 loads of select, 3.21 loads of trim and 13.77 loads of ground beef).
MONDAY'S CATTLE CALL: Lower. Until the board stabilizes, it's likely that prices will continue to trade steady/somewhat lower.
FEEDER CATTLE:
It was a nightmare of day for the feeder cattle complex as the market deteriorated all throughout Friday's trade. Once traders saw the live cattle complex trading lower and noted the descend in the cash cattle complex, there was no hope of turning the market higher ahead of Friday's end. August feeder cattle closed $3.95 lower at $242.77, September feeders closed $4.17 lower at $239.50 and October feeders closed $4.95 lower at $235.95. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week steers traded $3.00 to $5.00 higher and feeder heifers traded $1.00 to $4.00 stronger. Heifer calves sold $6.00 to $9.00 higher. Slaughter cows and slaughter bulls traded steady. Feeder cattle supply over 600 pounds was 61%. The CME feeder cattle index 8/17/2024: up $0.37, $246.71.
LEAN HOGS:
With pork cutout values closing slightly lower and the market just not having the technical support from traders in which it would have hoped for -- the lean hog market also closed lower. October lean hogs closed $1.42 lower at $75.07, December lean hogs closed $1.00 lower at $67.22 and February lean hogs closed $0.77 lower at $70.97. The afternoon's carcass price was most affected by the butt's $3.84 decline, but the ham did fall $2.98 lower, and the belly dropped $2.73. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.31 with a weighted average price of $83.00 on 1,112 head. Pork cutouts totaled 255.28 loads with 219.60 loads of pork cuts and 35.68 loads of trim. Pork cutout values: down $1.20, $98.67. Friday's slaughter is estimated at 464,000 head -- 19,000 head more than a week ago and 9,000 head less than a year ago. Saturday's slaughter is projected to be around 123,000 head. The CME lean hog index 8/14/2024: up $0.02, $90.20.
MONDAY'S HOG CALL: Lower. Packers rarely show Monday's cash market much interest and with pork cutout values closing lower on Friday, it's likely that they'll wait until later in the week to show much cash interest.
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