GENERAL COMMENTS:
It was a pleasantly surprising day for the cattle complex as both the live cattle and feeder cattle markets closed higher thanks to ample trader support. Meanwhile, the lean hog complex closed mostly lower as traders want to see what the week's pork demand amounts to. December corn is down 4 1/2 cents per bushel and December soybean meal is up $3.70. The Dow Jones Industrial Average is up 65.44 points.
LIVE CATTLE:
The live cattle closed higher as the market was well supported by traders all through Monday's complex. October live cattle closed $1.27 higher at $176.97, December live cattle closed $1.17 higher at $176.37 and February live cattle closed $0.85 higher at $177.32. It will be interesting to see how the market performs later throughout the week as many are hoping that last week's lower trend is going to stand as a bottom for the complex's current move. The cash cattle complex will likely trade somewhat lower again this week as packers have been able to buy cattle with time and build up inventory -- not to mention, next week's kill schedule will be reduced for the Labor Day holiday. Monday's slaughter is estimated at 116,000 head -- 1,000 head less than a week ago and 9,000 head less than a year ago.
Last week, Northern dressed cattle traded for mostly $288 to $295, but mostly at $293, which is $5.00 lower than last week's weighted average. Southern live cattle traded at mostly $183, which is $2.00 lower than the prior week's weighted average. Last week's negotiated cash cattle trade totaled 54,695 head. Of that, 58% (31,490 head) were committed to the nearby delivery, while the remaining 42% (23,205 head) were committed to the deferred delivery.
Boxed beef prices closed lower: choice down $1.44 ($315.90) and select down $0.27 ($300.19) with a movement of 115 loads (75.30 loads of choice, 19.07 loads of select, 7.84 loads of trim and 12.59 loads of ground beef).
TUESDAY'S CATTLE CALL: Lower. Given that packers have been able to buy cattle with time, it's likely that this week's market will again trade lower.
FEEDER CATTLE:
It was encouraging to see the feeder cattle complex trade higher through Monday's market especially given that today was the first chance traders had to react to Friday's bearish Cattle on Feed report. September feeders closed $2.77 higher at $241.35, October feeders closed $3.10 higher at $237.47 and November feeders closed $3.12 higher at $234.72. Come Tuesday it's likely that traders will be pressed on their decision to advance the market and could face some technical opposition. At Joplin Regional Stockyards in Carthage, Missouri compared to last week feeder steers under 675 pounds sold $9.00 to $18.00 lower with the heavier weights trading $2.00 to $8.00 lower. Feeder heifers under 650 pounds sold $8.00 to $12.00 lower with the heavier weights trading $2.00 to $6.00 softer. Feeder cattle supply over 600 pounds was 72%. The CME feeder cattle index 8/23/2024: up $1.13, $242.83.
LEAN HOGS:
Try as it might, the lean hog complex ran out of gusto ahead of Monday's close. After rallying late last week, the complex plateaued before the day's end as traders were somewhat disappointed with the day's pork demand and are going to need to see better consumer interest before they'll likely advance the complex much more. October lean hogs closed $0.15 lower at $80.40, December lean hogs closed $0.05 lower at $70.70 and February lean hogs closed $0.22 lower at $73.60. The afternoon cutout price closed notably lower as the belly fell $6.55 lower and the loin closed $3.78 lower. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.59 with a weighted average price of $80.17 on 3,390 head. Pork cutouts total 260.18 loads with 228.91 loads of pork cuts and 31.27 loads of trim. Pork cutout values: down $4.07, $94.98. Monday's slaughter is estimated at 484,000 head -- 1,000 head more than a week ago and 7,000 head more than a year ago. The CME lean hog index 8/22/2024: down $0.61, $88.22.
TUESDAY'S HOG CALL: STEADY. Packers will likely show moderate demand in Tuesday's cash market as they'll need to secure some inventory, but at the same time, it's not likely that they'll buy aggressively as they're going to be watching demand closely and Monday's carcass price closed lower.
No comments:
Post a Comment