GENERAL COMMENTS:
The cattle complex saw some support surface ahead of the day's end, but that doesn't mean that the market is rebounding. Some more cash cattle trade developed in the South at $183, which is $2 lower than last week's weighted average. December corn is up 1/4 cent per bushel, and December soybean meal is up $0.40. The Dow Jones Industrial Average is up 55.52 points.
LIVE CATTLE:
All in all, it was another disappointing day for the live cattle complex even though the market didn't close as dramatically as it did on Tuesday. It was positive to see that some of the live cattle contracts were able to close slightly higher ahead of the day's end and that boxed beef prices closed higher. But even so, the spot October contract chiseled its way even lower, and the cash cattle market sold more cattle for cheaper prices compared to last week. Thus far throughout the week, Southern live cattle have traded for mostly $183, which is $2 lower than last week's weighted average, and Northern dressed cattle have traded for mostly $293 to $294, which is $4 to $5 lower than last week's weighted average. August live cattle closed $0.20 higher at $181.22, October live cattle closed $0.97 lower at $174.62, and December live cattle closed $0.82 lower at $174.27.
Wednesday's slaughter is estimated at 122,000 head -- steady with a week ago but 4,000 head more than a year ago.
Boxed beef prices closed higher: choice up $0.13 ($315.21) and select up $0.04 ($301.08) with a movement of 123 loads (77.73 loads of choice, 28.11 loads of select, 6.49 loads of trim and 11.16 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady with the week's trend. Given that cattle have not traded in both regions, it's likely that the week's prices are set.
FEEDER CATTLE:
I was pleasantly surprised to see the feeder cattle complex close slightly higher given that the market was trading fully lower at noon and that the live cattle complex didn't offer much support throughout the day. August feeders closed $1.05 higher at $239.25, September feeders closed $1.17 higher at $235.67 and October feeders closed $0.35 higher at $231.67. It's somewhat comforting to see that traders respected the low made on Tuesday and that they didn't push the complex lower than that threshold. I'm not convinced that the market has now established a new low for the move, but hopefully, time will prove to us that it did. At Ozarks Regional Stockyards in West Plains, Missouri, compared to last week, feeder steers and heifers sold steady to $5 lower. Claves traded mostly $3 to $8 lower with spots as low at $14 lower. Feeder cattle supply over 600 pounds was 47%. The CME feeder cattle index down $0.12, $243.73.
LEAN HOGS:
The lean hog complex tried to trade higher throughout most of the day, but ahead of Wednesday's close, the market's nearby contracts fell lower while the deferred months were able to maintain their slightly higher position. October lean hogs closed $0.25 lower at $76.15, December lean hogs closed $0.22 lower at $67.87, and February lean hogs closed $0.05 lower at $71.52. Some of the market's nearby softness likely stemmed from some of the pressure currently being seen in the cattle complex but also from the fact that pork cutout values were only a penny shy of closing $3 lower Wednesday afternoon. With a $9.88 decline in the belly, the $4.57 drop in the butt and $4.07 drop in the ham, there was little hope that the afternoon carcass price would be able to do anything but close lower. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.20 with a weighted average price of $82.06 on 5,455 head. Pork cutouts totaled 312.93 loads with 276.07 loads of pork cuts and 36.86 loads of trim. Pork cutout values: down $2.99, $94.55. Wednesday's slaughter is estimated at 481,000 head -- steady with a week ago but 17,000 head more than a year ago. The CME lean hog index 8/19/2024: down $0.24, $89.71.
THURSDAY'S HOG CALL: Lower. It's likely that packers have bought the bulk of their cash needs already and that they'll only lightly participate in the cash market the rest of the week.
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