GENERAL COMMENTS:
It was a fruitful day for the livestock complex as all three of the markets rounded out the week on a stronger note. The cash cattle market didn't see much action throughout the day as packers did most of their buying on Thursday. December corn is up 5 cents per bushel and December soybean meal is up $2.10. The Dow Jones Industrial Average is up 211.47 points.
From Friday to Friday, livestock futures scored the following changes: August live cattle up $3.28, October live cattle up $2.90; September feeder cattle up $1.90, October feeder cattle up $3.38; October lean hogs up $1.68, December lean hogs up $2.03; September corn up $0.10, December corn up $0.10.
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Please note that the markets will be closed on Monday, September 2 for Labor Day so regular DTN commentary will resume on Tuesday, September 3.
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LIVE CATTLE:
The live cattle complex was able to round out the week on a stronger note as thankfully traders were again able to find stable footing in the futures complex which ultimately led to the market's slightly higher close. October live cattle closed $0.70 higher at $178.60, December live cattle closed $0.85 higher at $177.55 and February live cattle closed $1.05 higher at $178.45. Even though trader support was strong this week, the market has not yet been able to take on the resistance around its 100-day moving average. It could be that traders have to wait until fundamental support grows stronger which could be later this fall when seasonally boxed beef prices turn higher, and cash prices begin to trade higher as well. No new cash cattle trade developed throughout the day as packers did most of their buying on Thursday. Throughout the week Southern live cattle traded for mostly $183 which is steady with last week's weighted average, and Northern dressed deals were marked at mostly $292 which is $2.00 lower than last week's weighted average.
Friday's slaughter is estimated at 120,000 head -- 7,000 head more than a week ago and 1,000 head less than a year ago. Saturday's slaughter is projected to be around 14,000 head. The week's total slaughter is estimated at 611,000 head -- 3,000 head more than a week ago and 19,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $0.68 ($309.34) and select down $0.37 ($295.82) with a movement of 98 loads (57.24 loads of choice, 11.17 loads of select, 14.45 loads of trim and 14.82 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat lower. Depending on how many cattle packers bought with time, next week's market could be in the same position it was this week where feedlot managers were hoping to hold prices steady but if packers have enough supply built up prices could trend lower again.
FEEDER CATTLE:
Once again, the feeder cattle complex was led to a higher day-end close as the market closely followed in the live cattle market's direction. Traders were very keen this past week to move the feeder cattle complex in the same direction as the live cattle market as even though trader support was more available this past week -- the market hasn't completely shaken its jitters thanks to ongoing economic and presidential election fears. September feeders closed $0.97 higher at $240.47, October feeders closed $1.07 higher at $237.75 and November feeders closed $0.85 higher at $235.25. The Oklahoma Weekly Cattle Auction summary shared that compared to last week steers traded $5.00 to $10.00 higher and feeder heifers traded $2.00 to $7.00 higher. Heifer calves sold $3.00 lower to $3.00 higher. Slaughter cows sold $1.00 to $2.00 lower and slaughter bulls sold $1.00 lower. Feeder cattle supply over 600 pounds was 68%. The CME feeder cattle index 8/29/2024: up $0.31, $242.95.
LEAN HOGS:
If you want to look at some powerful charts that display strong trader support and steady, and stable gains – look no further than the lean hog complex. The market was yet again able to close higher as trades were elated to see strong consumer demand and really saw no reason why to pull the reins back on the complex ahead of Friday's close. October lean hogs closed $0.05 higher at $82.22, December lean hogs closed $0.22 higher at $72.77 and February lean hogs closed $0.37 higher at $75.37. Hog prices closed $0.09 higher on the Daily Direct Afternoon Hog Report, equating to a weighted average of $76.64 on 1,352 head. Pork cutouts totaled 284.61 loads with 248.05 loads of pork cuts and 36.56 loads of trim. Pork cutout values: up $1.34. Friday's slaughter is estimated at 476,000 head -- 3,000 head less than a week ago and 11,000 head more than a year ago. Saturday's slaughter is projected to be around 37,000 head. The CME lean hog index 8/28/2024: down $0.41, $87.04.
TUESDAY'S HOG CALL: Higher. Given that the market will be closed on Monday, packers will likely show the complex better interest than normal early in the week as they'll be looking to replenish inventory.
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