GENERAL COMMENTS:
Monday's lower close allowed the cattle complex to trade higher thus far through Tuesday morning. Traders remain skeptical of taking on the resistance at the market's 100-day moving average in the live cattle complex, but higher tones are at least the theme for cattle. December corn is down 3 1/2 cents per bushel and December soybean meal is down $4.20. The Dow Jones Industrial Average is up 315.12 points.
LIVE CATTLE:
Between Monday's lower close which pulled the market away from the market's 100-day moving average, to the higher trend in boxed beef prices, the live cattle complex is trading higher as the market seems to have found adequate support. October live cattle are up $0.52 at $180.55, December live cattle are up $0.65 at $179.60 and February live cattle are up $0.57 at $180.25. No cash cattle trade has developed yet in the countryside, but asking prices are noted in the South at $187 to $188. Asking prices in the North have not yet surfaced. It's likely the market could keep with this slightly higher trend through Tuesday's end, but I'd be surprised if traders close the spot October contract above the 100-day moving average.
Boxed beef prices are higher: choice up $2.47 ($318.30) and select up $1.15 ($301.32) with a movement of 79 loads (49.09 loads of choice, 17.69 loads of select, 4.58 loads of trim and 7.18 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is following in the live cattle market's shadow as it too is higher. Demand was strong Monday afternoon in the countryside for feeder cattle, which hopefully will remain a constant theme this week and lend traders even more support. August feeders are up $1.30 at $245.70, September feeders are up $1.67 at $241.17 and October feeders are up $0.82 at $238.55.
LEAN HOGS:
The lean hog complex is trending substantially lower moving into Tuesday's noon hour; it seems as though traders are worried about demand following Monday's less-than-desirable WASDE report. Even though both cash hog prices and midday pork cutout values are higher, traders are driving the complex lower as they worry about demand in the near term and into 2025. October lean hogs are up $2.25 at $72.10, December lean hogs are up $1.92 at $64.15 and February lean hogs are up $1.77 at $67.82.
The projected CME Lean Hog Index for 8/12/2024 is down $0.58 at $90.34, and the actual index for 8/9/2024 is down $0.98 at $90.92. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.68 with a weighted average price of $83.24, ranging from $73.00 to $85.00 on 4,240 head and a five-day rolling average of $83.60. Pork cutouts total 183.70 loads with 162.62 loads of pork cuts and 21.08 loads of trim. Pork cutout values: up $1.41, $101.68.
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