Tuesday Closing Livestock Market Update - Cattle Keep Rallying

GENERAL COMMENTS:

The livestock complex had a mixed day, as the cattle contracts were able to keep their rallying nature through the day's end, but the lean hog complex faced some pressure and closed lower. Heading into Wednesday's market, packer interest is expected to improve for the cash cattle market. Asking prices are noted for the South at $187 to $188 but are not yet established in the North. December corn is down 4 1/4 cents per bushel, and December soybean meal is down $5.40. The Dow Jones Industrial Average is up 408.63 points.

LIVE CATTLE:

The live cattle complex was able to again chop sideways as the market found a little more support woven into the futures market thanks to Monday's lower close. Still, the live cattle complex wasn't willing to take on the market's resistance at its 100-day moving average. But if boxed beef prices continue to trade higher and the cash cattle market can trade at least steady, then there's a chance traders may just find enough fundamental support in the market to garnish taking out that threshold. Time will tell. October live cattle closed $0.72 higher at $180.75, December live cattle closed $1.35 higher at $180.30, and February live cattle closed $1.67 higher at $181.35. Asking prices in the South are noted at $187 to $188 but are still not established in the North. Packer interest should begin to improve on Wednesday, but trade could be delayed until later in the week, as feedlot managers hope to keep the market at least steady. 

Tuesday's slaughter is estimated at 122,000 head -- steady with a week ago but 3,000 head less than a year ago.

Boxed beef prices closed higher: choice up $1.10 ($316.93) and select up $0.44 ($300.61) with a movement of 138 loads (94.51 loads of choice, 26.85 loads of select, 6.32 loads of trim and 10.72 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Steady. Given the recent uptick in boxed beef prices, the cash market may be able to trade steady this week.

FEEDER CATTLE:

The feeder cattle complex traded strong throughout the day but wasn't confident enough to break outside of the market's current sideways trading range. On Wednesday, the complex will be pressured with an option: to either submit to the market's current nearby resistance, or muster up enough support and break out of the current trading range. Much of the feeder cattle market's attitude will likely depend on what the live cattle complex does, as traders are currently more worried about technical support than they are about fundamental support. August feeders closed $2.07 higher at $246.47, September feeders closed $2.67 higher at $242.17 and October feeders closed $2.20 higher at $239.92. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers traded $2 to $6 higher, and on a light test, steer calves traded $10 higher. Feeder heifers sold steady to $4 higher, and heifer calves sold $7 to $10 higher. Feeder cattle supply over 600 pounds was 69%. The CME feeder cattle index 8/12/2024: down $0.48, $245.09.

LEAN HOGS:

The lean hog complex didn't have a fruitful day, as the market faced stiff technical pressure. Yes, pork cutout values and cash prices may have ended the day higher, but traders seem concerned with demand for both the near-term and long-term after reading Monday's WASDE report. October lean hogs closed $1.47 lower at $72.85, December lean hogs closed $1.32 lower at $64.75, and February lean hogs closed $1.15 lower at $68.45. Pork cutouts totaled 333.92 loads with 287.72 loads of pork cuts and 46.20 loads of trim. Pork cutout values: up $0.06, $100.33. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.69 with a weighted average price of $83.17 on 12,645 head. Tuesday's slaughter is estimated at 482,000 head -- steady with a week and year ago. The CME lean hog index 8/9/2024: down $0.98, $90.92.

WEDNESDAY'S HOG CALL: Steady to somewhat lower. Packers were more aggressive in Tuesday's cash market, but it's likely that they'll still need to be at least aggressive one more day this week before they have their needs for the week fulfilled.