GENERAL COMMENTS:
It was another prosperous day for the livestock sector as all three of the markets closed higher. So long as traders continue to support the market with vigor, there's a chance that the cash cattle market could trade steady later this week. December corn is up 6 1/4 cents per bushel and December soybean meal is up $4.00. The Dow Jones Industrial Average is up 9.98 points.
LIVE CATTLE:
The live cattle complex powered all the way through Tuesdays' end and closed anywhere from $1.00 to $2.00 higher by day's closing bell. It was exciting to see the complex recover as much position as it did throughout the day as every day that the market can trade higher, there's more reassurance and confidence built back into the marketplace. The spot October contract didn't reach the market's 100-day moving average of $180.95, which will remain a critical barrier to monitor moving forward. October live cattle closed $2.42 higher at $179.40, December live cattle closed $2.47 higher at $178.85 and February live cattle closed $2.17 higher at $179.50. Still no cash cattle trade developed throughout the day and even though some asking prices could be posted on Wednesday, it's mostly likely that feedlot managers will elect to wait and trade cattle until later in the week as they're hoping to hold the market steady this week.
Tuesdays' slaughter is estimated at 121,000 head – 3,000 head less than a week ago and 5,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $3.93 ($311.97) and select up $0.06 ($300.25) with a movement of 167 loads (105.62 loads of choice, 30.88 loads of select, 8.13 loads of trim and 22.54 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Given that the board has continued to trade higher, there's a chance that the cash complex could trade higher.
FEEDER CATTLE:
With the added support of better trader interest and the fact that the live cattle contracts were trading higher all throughout the day – the feeder cattle complex didn't struggle whatsoever to trade higher through Tuesday's market. The nearby contracts closed mildly higher, but it was the market's deferred contracts that saw gains over $1.00 higher. And so long as the live cattle complex continues to trade higher – feeders should be able to follow in their shadow. September feeders closed $0.57 higher at $241.92, October feeders closed $0.90 higher at $238.37 and November feeders closed $1.55 higher at $236.27. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week steers traded steady to $2.00 lower and heifers traded unevenly steady. Feeder cattle supply over 600 pounds was 76%. The CME feeder cattle index 8/26/2024: down $0.20, $242.63.
LEAN HOGS:
The lean hog complex continues to charge onward as the market is currently well supported by stronger pork demand and ample trader interest. This afternoon the carcass price was able to round out the day higher as the ham contributed a substantial $3.08 jump, and the belly closed $1.68 higher. The spot October contract could run into a little technical resistance around $83.00, but really the market is free and clear from most resistance until the $88.00 threshold. October lean hogs closed $1.67 higher at $82.07, December lean hogs closed $0.95 higher at $71.65 and February lean hogs closed $0.60 higher at $74.20. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.62 with a weighted average price of $79.55 on 7,267 head. Pork cutouts totaled 300.59 loads with 253.79 loads of pork cuts and 46.80 loads of trim. Pork cutout values: up $1.07, $96.05. The CME lean hog index 8/22/2024: down $0.61, $88.22.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Packers were more aggressive in Tuesday's market, but with pork cutout values still seeing ample support, they'll likely aggressively support the market for at least another day if not more.
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