GENERAL COMMENTS:
It's another grim day for the livestock complex as the market continues to find stable technical support following last week's selloff. The cash cattle market has only been lightly tested this week, but prices are trending lower. December corn is down 2 cents per bushel and December soybean meal is down $4.60. The Dow Jones Industrial Average is up 79.60 points.
LIVE CATTLE:
With the cash cattle market not trading as strong as hoped for, the live cattle complex is moderately lower moving into Friday's noon hour. October live cattle are down $1.75 at $179.00, December live cattle are down $1.77 at $178.80, and February live cattle are down $2.07 at $179.67. All in all, the cash cattle market still hasn't seen very many head traded this week. But, of the cattle that have traded, prices have been notably lower. Some light trade has been marked Friday morning at $185 in the South, which is $1.00 to $2.00 lower than last week's weighted average. A few bids have been renewed in Nebraska, but at this point no new dressed sales have been reported following Thursday's light trade at $298, which is $6.00 lower than last week's weighted average. More trade will likely develop Friday afternoon and it's anyone's guess at this point where prices will land.
Boxed beef prices higher: choice up $0.59 ($317.53) and select up $1.05 ($303.08) with a movement of 78 loads (53.19 loads of choice, 10.21 loads of select, 3.21 loads of trim and 11.51 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex simply can't seem to win, technically speaking, as the market continues to endure what seems like blow after blow. With the live cattle contracts trading lower, it's no surprise the feeder cattle contracts are also lower; but the $2.00 to $3.00 decline again seems a bit overdone. August feeder cattle are down $2.32 at $244.40, September feeder cattle are down $2.65 at $241.02 and October feeder cattle are down $3.55 at $237.35. At this point, the market seems to be all but holding its breath, praying that the day's end comes sooner rather than later as technical pressure isn't letting up.
LEAN HOGS:
The lean hog complex is feeling the same pressure the rest of the livestock sector is feeling as it trades lower, too. October lean hogs are down $1.75 at $74.75, December lean hogs are down $1.62 at $66.60 and February lean hogs are down $1.20 at $70.55. With late-week pork cutout values trending lower, it's unlikely the market changes its direction ahead of Friday's end as traders simply aren't finding adequate support in the market.
The projected CME Lean Hog Index for 8/15/2024 is down $0.11 at $90.09, and the actual index for 8/14/2024 is up $0.02 at $90.20. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.51 with a weighted average price of $82.60, ranging from $81.25 to $83.00 on 522 head and a five-day rolling average of $83.64. Pork cutouts total 166.96 loads with 141.38 loads of pork cuts and 25.58 loads of trim. Pork cutout values: down $0.95, $98.92.
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