GENERAL COMMENTS:
It was another grim day for the livestock complex as traders continue to struggle to find any support in the marketplace. There were a few more cash cattle sales reported -- but prices remained steady with Wednesday's trade. December corn is down 3 3/4 cents per bushel and December soybean meal is down $2.20. The Dow Jones Industrial Average is up 683.04 points.
Thursday's export report shared that beef net sales of 10,000 metric tons (mt) for 2024 were down 43% from the previous week and 27% from the prior 4-week average. The three largest buyers were South Korea (3,900 mt), Japan (1,900 mt) and Mexico (1,200 mt). Pork net sales of 34,600 mt for 2024 were up 10% from the previous and 24% from the prior 4-week average. The three largest buyers were Mexico (14,800 mt), China (7,400 mt) and Japan (2,900 mt).
LIVE CATTLE:
Thursday's market was bitter for the live cattle complex as traders found no support throughout the day and consequently the complex just traded lower and lower as time ticked on. August live cattle closed $0.22 lower at $182.05, October live cattle closed $1.25 lower at $178.02 and December live cattle closed $1.40 lower at $176.72. What's becoming even more alarming is the fact that the market is now pressuring the bottom side of its current move -- which could lead to even lower prices if some support isn't found in the sector. Some light sales were reported in both regions throughout the day, but prices remained steady with the week's average. So far this week Southern live cattle have traded for $185 to $192 but mostly at $186 which is $2.00 lower than last week's weighted average. Northern dressed cattle traded anywhere from $302 to $306 but most at $305 which is $4.00 to $5.00 lower than last week's weighted average.
Thursday's slaughter is estimated at 121,000 head -- 7,000 head more than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed lower: choice down $1.73 ($312.12) and select down $0.80 ($298.03) with a movement of 124 loads (83.69 loads of choice, 19.14 loads of select, 9.80 loads of trim and 11.64 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that prices are fully established now in both regions likely means that Friday's trade will just be clean up.
FEEDER CATTLE:
It was another dismal and dreary day for the feeder cattle complex as the market continues to slowly sink lower and lower. And with the live cattle market lending virtually no support, traders are desperate for technical support but keep coming up short handed. August feeders closed $0.25 lower at $242.37, September feeders closed $1.47 lower at $237.42 and October feeders closed $2.12 lower at $236.00. At Winter Livestock Auction in Pratt, Kansas compared to last week feeder steers weighing 700 to 950 pounds traded $3.00 to $5.00 lower, but front end steers traded steady. There was actually one load of steers weighing 963 pounds which sold for $237.50 which is $8.00 higher than last week's market. Feeder heifers weighing 700 to 900 sold steady to $2.00 higher. There weren't enough calves at the sale to develop an accurate trend. Feeder cattle supply over 600 pounds was 95%. The CME feeder cattle index 8/7/2024: down $1.88, $252.84.
LEAN HOGS:
The lean hog complex endured stiff pressure throughout all of Thursday's trade as traders weren't overly impressed with the morning's export sales report, and the market's doggish attitude kept with the complex through closing. August lean hogs closed $0.57 lower at $90.02, October lean hogs closed $0.95 lower at $73.62 and December lean hogs closed $1.20 lower at $65.87. It didn't help matters that afternoon pork cutout values closed lower, which was again largely driven by the decline in the belly, which fell $4.74 lower. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.05 with a weighted average price of $84.87 on 2,803 head. Pork cutouts totaled 348.84 loads with 297.90 loads of pork cuts and 50.94 loads of trim. Pork cutout values: down $0.73, $98.23. Thursday's slaughter is estimated at 463,000 head -- 18,000 head less than a week ago and 13,000 head less than a year ago. The CME lean hog index 8/6/2024: down $0.23, $93.10.
FRIDAY'S HOG CALL: Lower. Given that packers were aggressive earlier this week likely means that they've fulfilled their needs for the week and won't show the cash market much interest on Friday.
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