GENERAL COMMENTS:
Well thus far Friday's market hasn't been the supportive breath of fresh air the livestock complex was hoping for; and, unfortunately, given the distance in which traders are keeping from the complex, it's likely the market closes with these weaker tones as well. No new cash cattle sales have been reported, and it's likely the bulk of the week's trade is done. December corn is up 5 cents per bushel and December soybean meal is up $7.30. The Dow Jones Industrial Average is down 765.77 points.
LIVE CATTLE:
The live cattle complex has continued to bleed lower as traders only seem willing to sell the market out at this point. It's likely the complex will close today with the same doggish tone it currently possesses as the cash cattle market won't likely lend any late-week support and as boxed beef prices are mixed. August live cattle are up $0.10 at $184.90, October live cattle are down $0.75 at $182.95 and December live cattle are down $1.85 at $182.75. There's a single bid currently on the table in Kansas at $188, but at this point no new trade has developed. It's likely some more clean-up trade will develop ahead of the weekend, but prices are likely to remain consistent with the week's trend. Thus far this week Southern live cattle have been marked at mostly $188, which is $2.00 lower than last week's weighted average. Northern dressed cattle have sold for mostly $310, which is also $2.00 lower than last week's weighted average.
Boxed beef prices are mixed: choice up $0.76 ($313.55) and select down $0.77 ($296.69) with a movement of 76 loads (57.14 loads of choice, 10.38 loads of select, zero loads of trim and 8.73 loads of ground beef).
FEEDER CATTLE:
It's been another miserable day for the feeder cattle complex as the market's downward trajectory has only continued. Between a lack of technical support from the live cattle complex and not seeing as much fundamental support as the market has recently when the fed cash cattle market was trading higher -- traders have seemed to jump ship, leaving the feeder cattle market to endure a late-week crash. August feeders are down $2.42 at $250.72, September feeders are down $2.95 at $248.85 and October feeders are down $3.37 at $247.50. From a solely fundamental standpoint, the market's recent plummet seems completely overdone and somewhat irrational. And what makes these gut-wrenching turns even harder to stomach is realizing not every turn the market makes has to be rational or justified on sound logic. Sometimes traders are just trading and moves get overdone.
LEAN HOGS:
The lean hog complex's rally has stalled as the market is trading merely sideways with Thursday's close. It's no surprise the cash hog complex isn't seeing much support as traders bought aggressively in the cash market Wednesday. It's likely traders won't do much more with the hog complex ahead of the week's close and will reassess the market come Monday. August lean hogs are down $0.35 at $92.80, October lean hogs are down $0.37 at $76.65 and December lean hogs are down $0.37 at $68.95.
The projected CME Lean Hog Index for 8/1/2024 is up $0.11 at $93.64 and the actual index for 7/31/2024 is up $0.45 at $93.53. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However we can see that only 195 head have traded and that the market's five-day rolling average now sits at $85.14. Pork cutouts total 145.57 loads with 120.10 loads of pork cuts and 25.47 loads of trim. Pork cutout values: up $2.89, $108.75.
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