GENERAL COMMENTS:
It was a positive day for the livestock complex as the market was well supported by traders which helped all three markets close fully higher. Heading into Friday's market, the afternoon's Cattle on Feed report will be the biggest ticket item for the day. December corn is down 4 3/4 cents per bushel and December soybean meal is down $4.60. The Dow Jones Industrial Average is down 177.71 points.
Thursday's export sales report shared that beef net sales of 15,900 metric tons (mt) for 2024 were down 44% from the previous week and 8% from the prior 4-week average. The three largest buyers were Japan (5,100 mt), South Korea (4,300 mt) and China (2,200 mt). Pork net sales of 19,300 mt for 2024 -- a marketing year low -- were down 7% from the previous week and 34% from the prior 4-week average. The three largest buyers were Mexico (4,700 mt), Canada (3,100 mt) and Japan (3,000 mt).
LIVE CATTLE:
The live cattle complex was well supported throughout the day and was thankfully able to round out Thursday's market slightly higher. Yes, boxed beef prices did close higher, but more than anything the market was able to round out the day higher thanks to trader interest and support. August live cattle closed $1.32 higher at $182.55, October live cattle closed $1.27 higher at $175.90 and December live cattle closed $1.25 higher at $175.52. The cash cattle complex sold a few more head, but all in all it's looking like the bulk of this week's trade is 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.
Thursday's slaughter is estimated at 121,000 head -- 1,000 head more than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.78 ($315.99) and select up $0.95 ($302.03) with a movement of 125 loads (84.61 loads of choice, 19.64 loads of select, 5.69 loads of trim and 15.43 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. If any more sales develop ahead of the week's end, it's likely that they will trend steady with the week's weighted average.
FEEDER CATTLE:
The feeder cattle complex finally found some positive technical footing as the market was able to trend confidently higher all throughout Thursday's trade. With the slight help of higher boxed beef prices, and more than anything, the willingness from traders to dip their toes back in the market, the feeder cattle complex scored a higher close by the day's end. August feeders closed $2.72 higher at $241.97, September feeders closed $2.52 higher at $238.20 and October feeders closed $2.57 higher at $234.25. Even though Thursday's market was fruitful for the complex -- I'm skeptical if Friday's market will see the same level of support as traders will likely brace themselves ahead of Friday's Cattle on Feed report. At Winter Livestock Auction in Pratt, Kansas, compared to last week feeder steers weighing 600 975 pounds traded $2.00 to $5.00 lower, but thin fleshed steers sold steady. There weren't enough steers in the 400-to-600-pound range to develop an accurate test, but a higher tone was noted. Slaughter cows traded $3.00 to $5.00 lower. Feeder cattle supply over 600 pounds was 91%. The CME feeder cattle index 8/21/2024: down $1.06, $242.67.
LEAN HOGS:
The lean hog complex had a thrilling day as the spot October contract broke out of its sideways trading range thanks to the added support of traders and better pork demand. October lean hogs closed $3.47 higher at $79.62, December lean hogs closed $2.40 higher at $70.27 and February lean hogs closed $1.82 higher at $73.35. Today's close is the highest the October contract has traded since early June. The afternoon carcass price was mainly supported by the belly's $4.71 gain, but also by the ham's $4.01 jump and the butt's $3.43 gain. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.30 with a weighted average price of $83.36 on 1,254 head. Pork cutouts totaled 305.13 loads with 267.85 loads of pork cuts and 37.28 loads of trim. Pork cutout values: up $1.88, $96.43. Thursday's slaughter is estimated at 482,000 head -- 3,000 head more than a week ago and 17,000 head more than a year ago. The CME lean hog index 8/20/2024: down $0.50, $89.21.
FRIDAY'S HOG CALL: Lower. It's likely that packers have fulfilled the bulk of their cash needs this week and that Friday's market won't see much interest.
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