GENERAL COMMENT:
Early Friday morning Federal Reserve Chairman, Jerome Powell shared that he expects interest rates to be lowered in the September market committee meeting which has helped change the overall moral in the livestock complex.
December corn is down 1 3/4 cents per bushel and December soybean meal is down $0.50. The Dow Jones Industrial Average is up 230.56 points.
LIVE CATTLE:
The live cattle complex is reacting positively to the announcement shared by Federal Reserve Chairman Powell, as not only would cattlemen benefit from cheaper interest rates, but the economic sector is rallying on news as well which helps the greater commodity complex. August live cattle are down $0.07 at $182.47, October live cattle are up $0.17 at $176.05 and December live cattle are up $0.30 at $175.82. The market won't likely trade much more aggressively than what it currently is as there's still another hurdle to jump ahead of the week's end -- the monthly Cattle on Feed report. And with placements expected to be greater than a year ago, the report isn't expected to be bullish. No new cash cattle sales have developed at this point an overall it's looking like the week's trade is essentially done with. Thus far throughout the week Southern live cattle have been marked at mostly $183, which is $2.00 lower than last week's weighted average, and Northern dressed cattle have traded at mostly $293, which is $5.00 lower than last week's weighted average.
Boxed beef prices are higher: choice up $2.37 ($318.36) and select up $0.35 ($302.38) with a movement of 79 loads (55.43 loads of choice, 9.21 loads of select, zero loads of trim and 14.23 loads of ground beef).
FEEDER CATTLE:
Even with placements expected to be higher later this afternoon on the day's Cattle on Feed report the feeder cattle complex is elated to hear that the market could see cheaper interest rates after the September committee meeting. It's been a rough week for the feeder cattle complex, but the market's late week support is warmly welcomed. August feeders are up $0.62 at $242.60, September feeders are up $1.17 at $239.37 and October feeders are up $1.20 at $235.45.
LEAN HOGS:
It's rather impressive to see the lean hog complex keeping with its upward trek given that the market broke aggressively out of its sideways trading range Thursday afternoon. But at this point traders are seeing enough fundamental (higher cutout values) and ample technical support which is helping traders keep with their upward trend. October lean hogs are up $0.32 at $79.95, December lean hogs are up $0.22 at $70.50 and February lean hogs are up $0.27 at $73.60.
The projected lean hog index for 8/22/2024 is down $0.61 at $88.22 and the actual index for 8/21/2024 is down $0.38 at $88.83. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.92 with a weighted average price of $80.44, ranging from $72.00 to $82.00 on 1,775 head and a five-day rolling average of $82.95. Pork cutouts total 206.37 loads with 175.11 loads of pork cuts and 31.26 loads of trim. Pork cutout values: up $2.86, $99.29.
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