GENERAL COMMENTS:
The livestock complex is trading lower into Monday's noon hour as outside economic pressures are heavily affecting the marketplace. Unfortunately, this pressure is likely to remain with the market well through the day as the Dow is still trading substantially lower. December corn is up 1 cent per bushel and December soybean meal is down $0.00. The Dow Jones Industrial Average is down 715.50 points.
LIVE CATTLE:
The live cattle complex is feeling the full effect of the stock market's downturn as its contracts are currently trading anywhere from $1.00 to $3.00 lower. August live cattle are down $0.90 at $183.17, October live cattle are down $1.90 at $180.12 and December live cattle are down $2.50 at $179.62. Unfortunately, I'd like to tell you that the market's fundamentals will keep the complex from trading too much lower, but in chaotic times like this (when traders send the market's spiraling) market fundamentals -- regardless how strong they are -- offer little support as traders are going to do whatever they please. So at this point in time, our job is to watch the market's external factors (the economy and relations in the middle East) and try to keep sense and level-headedness as adding more emotion to the market's current tizzy only creates more havoc.
Last week Southern live cattle traded at mostly $188 which is $2.00 lower than the previous week's weighted average, and Northern dressed cattle traded at $310 which is also $2.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 69,589 head. Of that 68% (47,185 head) were committed to the nearby delivery while the remaining 32% (22,404 head) were committed to the deferred delivery option. New showlists appear to be mixed, higher in Texas, but somewhat lower in Kansas, and lower in Nebraska/Colorado.
Boxed beef prices are higher: choice up $4.64 ($318.41) and select up $3.24 ($300.41) with a movement of 42 loads (25.33 loads of choice, 9.72 loads of select, zero loads of trim and 7.01 loads of ground beef).
FEEDER CATTLE:
It's been another blood-bath kind of day for the feeder cattle complex as the market seems to have virtually no technical footing. With the external concerns about the world's economy, the US economy and the futures market's current unsettled nature -- unfortunately it's likely that this uneasiness sticks with the market for the near term as in environments like these, market fundamentals don't seem to matter much. August feeder cattle are down $3.72 at $245.90, September feeders are down $4.97 at $243.15 and October feeders are down $5.32 at $241.25.
LEAN HOGS:
Compared to the cattle complex the lean hog market has fared through Monday's market relatively well considering that its losses are currently less than a dollar. August lean hogs are down $0.40 at $91.80, October lean hogs are down $0.75 at $75.82 and December lean hogs are down $0.75 at $68.40. But even though the lean hog market is seeming to endure Monday's pressure about as well as a market could, it's unlikely that the complex turns higher ahead of the day's end even if pork cutout values are higher as trader cautiousness is high right now.
The projected lean hog index for 8/2/2024 is down $0.05 at $93.59, and the actual index for 8/1/2024 is up $0.11 at $93.64. Hog prices on the Daily Direct Morning Hog Report average $82.05, ranging from $77.00 to $84.00 on 42 head, and a five-day rolling average of $85.18. Pork cutouts total 152.14 loads with 136.53 loads of pork cuts and 15.61 loads of trim. Pork cutout values: up $1.51, $105.82.
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