GENERAL COMMENTS:
The livestock complex was well supported throughout all of Wednesday's trade which helped the market accomplish higher closes in all three of the markets. Still no cash cattle trade has developed but packer interest is bound to be better by Thursday. December corn is up 3 1/2 cents per bushel and December soybean meal is up $4.50. The Dow Jones Industrial Average is up 242.75 points.
LIVE CATTLE:
Not only was it thrilling to see the spot October live cattle contract close higher, but the market was also able to close above its 100-day moving average -- which is always a positive, bullish technical signal. It will be imperative to watch to see how traders handle Thursday's market as they'll either continue with the upward trek or grown sheepish and revert back below resistance. October live cattle closed $1.37 higher at $182.12, December live cattle closed $1.30 higher at $181.60 and February live cattle closed $0.90 higher at $182.25. Still no substantial cash cattle trade has developed as feedlots managers are choosing to wait the week out in hopes for steady/somewhat higher trade. Asking prices are noted in the South at $187 to $188 but are still not established in the North.
Wednesday's slaughter is estimated at 122,000 head -- steady with a week and year ago.
Boxed beef prices closed lower: choice down $2.05 ($314.88) and select down $0.11 ($300.50) with a movement of 129 loads (91.13 loads of choice, 28.76 loads of select, zero loads of trim and 8.96 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to somewhat higher. With the added support of the board's higher trend this week, there's a chance that the cash cattle market could trade higher.
FEEDER CATTLE:
The feeder cattle complex made substantial gains through Wednesday's market as the market closed anywhere from $1.00 to $2.00 higher. The market was given the "go-ahead" when it saw that the live cattle market was trading higher and by the consistent support of strong feeder cattle sales in the countryside. The feeder cattle complex is a long way away from any resistance pressure so as long as support remains ample, the market should have not issue continuing to trade higher -- the ball continues to remain in the futures market's court. August feeders closed $1.42 higher at $247.90, September feeders closed $2.17 higher at $244.35 and October feeders closed $2.17 higher at $242.10. Ozarks Regional Stockyards in West Plains, Missouri compared to last week market, feeder steers and heifers traded $2.00 to $4.00 higher. Steer and heifer calves under 700 pounds traded $4.00 to $8.00 higher with spots of $12.00 higher. Feeder cattle supply over 600 pounds was 53%. The CME feeder cattle index 8/13/2024: up $0.23, $245.32.
LEAN HOGS:
The lean hog complex may have been pressured through Tuesday's market, but thankfully Wednesday came through and did some heavy lifting for the complex as it quickly regained all the position lost on Tuesday and then some. October lean hogs closed $3.07 higher at $75.92, December lean hogs closed $2.50 higher at $67.25 and February lean hogs closed $2.20 higher at $70.65. The afternoon carcass price was pulled lower by the loin's $2.38 decline mainly. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.26 with a weighted average price of $84.43 on 3,506 head. Pork cutouts total 340.49 loads with 297.95 loads of pork cuts and 42.54 loads of trim. Pork cutout values: down $1.02, $99.31. Wednesday's slaughter is estimated at 481,000 head -- steady with a week ago and 11,000 head more than a year ago. The CME feeder cattle index 8/12/2024: down $0.58, $90.34.
THURSDAY'S HOG CALL: Lower. Given that packers have now been active in the cash market for two days, it's likely that they've mostly filled their needs for the week and that cash prices will trend lower through the rest of the week.
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