GENERAL COMMENTS:
All in all, Friday's market was fruitful for the livestock complex as all three markets closed mostly higher. More than anything it was encouraging to see the cattle contracts close higher as they were severely affected by Monday's melt down. Monday will be a busy day for the markets as the monthly WASDE report is set to be released. December corn is down 2 cents per bushel and December soybean meal is down $5.70. The Dow Jones Industrial Average is up 51.05 points.
From Friday-to-Friday livestock futures scored the following changes: August live cattle up $0.15, October live cattle down $0.92; August feeder cattle down $3.15, September feeder cattle down $6.55; August lean hogs down $2.40, October lean hogs down $2.60; September corn down $0.10, December corn down $0.08.
LIVE CATTLE:
It was a pleasant and warmly welcomed surprise to see the live cattle complex trade higher through Friday's market. Most market participants were braced for another day of steady/somewhat lower trade as technically speaking the market has simply lacked reassurance following Monday's dramatic sell off. But with boxed beef prices trading higher throughout the day, traders were encouraged by that fundamental uptick and elected to recover some market position. August live cattle closed $2.20 higher at $184.25, October live cattle closed $3.12 higher at $181.15 and December live cattle closed $2.87 higher at $179.60. No new cash cattle sales were reported throughout the day as the bulk of the week's trade was already done with. Throughout the week Southern live cattle traded from $186 to $187 which is $1.00 to $2.00 lower than last week's weighted average, and Northern dressed sales were marked at mostly $305 which is $5.00 lower than last week's weighted average.
Friday's slaughter is estimated at 104,000 head -- 12,000 head less than a week ago and 3,000 head less than a year ago. Saturday's slaughter is projected to be around 3,000 head. The week's total slaughter is estimated around 591,000 head -- 2,000 head less than a week ago and 11,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.59 ($312.71) and select up $0.56 ($298.59) with a movement of 108 loads (74.91 loads of choice, 16.59 loads of select, 5.59 loads of trim and 10.87 loads of ground beef).
MONDAY'S CATTLE CALL: Lower. Given that packers have built some supply up around them it's likely that they'll try to get cattle bought cheaper again next week.
FEEDER CATTLE:
The feeder cattle complex endured a strenuous week but by Friday's end the market was thankfully able to close lower as traders showed up to the party even though it was late in the week. August feeders closed $4.12 higher at $246.50, September feeders closed $4.17 higher at $241.60 and October feeders closed $3.77 higher at $239.77. The market is still trading far below its 100-day and 40-day moving averages, but the higher close did help the market's overall moral. The Oklahoma Weekly Cattle Auction Summary shared that compared to last week feeder steers and heifers traded $9.00 to $14.00 lower. Steer and heifer calves sold $6.00 to $10.00 lower. Slaughter cows sold steady to $2.00 lower and slaughter bulls traded steady. Feeder cattle supply over 600 pounds was 63%. The CME feeder cattle index 8/8/2024: down $3.13, $249.71.
LEAN HOGS:
Well support by higher pork cutout values and the better overall market moral, the lean hog complex closed mostly higher by Friday's end. August lean hogs closed $0.22 lower at $89.80, October lean hogs closed $0.35 higher at $73.97 and December lean hogs closed $0.42 higher at $66.30. Yes, cash prices closed slightly lower (which is usual for a Friday) but with the added support of higher cutout values this afternoon, traders were pleased with the slight uptick in fundamental support. The carcass price was mostly influenced by the ham's $3.24 gain, and by the picnic's $2.31 gain. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.34 with a weighted average price of $83.53 on 1,150 head. Pork cutouts totaled 273.10 loads with 238.54 loads of pork cuts and 34.57 loads of trim. Pork cutout values: up $0.43, $98.66. Friday's slaughter is estimated at 445,000 head -- 31,000 head less than a week ago and 12,000 head less than a year ago. Saturday's slaughter is projected to be around 84,000 head. The CME lean hog index 8/7/2024: down $0.30, $92.80.
MONDAY'S HOG CALL: Steady/somewhat lower. Packers will likely wait until Tuesday or Wednesday before they really support the cash market again next week.
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