GENERAL COMMENTS:
The livestock complex continues to trade in a mostly cautious, skeptical manner as trades know that even though it seems like external stresses have lessened, that pressures between Iran and Israel could strike at any time, and the economy obviously hasn't fixed itself in a mere two days. The cash cattle market currently has a low bid of $305 being offered in the North, but feedlots haven't decided to sell any cattle yet. December corn is down 4 cents per bushel and December soybean meal is down $6.20. The Dow Jones Industrial Average is up 190.01 points.
LIVE CATTLE:
Although the spot and nearby contracts are struggling still ever so slightly, the rest of the live cattle complex is nearing Wednesday's noon hour mostly higher. August live cattle are down $0.07 at $181.90, October live cattle are down $0.40 at $178.65, and December live cattle are up $0.07 at $178.12. The market's hesitancy in the nearby contracts likely stems from the fact that the cash complex has yet to trade and that prices could be lower this week. There is currently a bid of $305 being offered in Eastern Nebraska, but at this point no feedlots have jumped at that low offer. Asking prices are noted at $188 to $190 in the South, but remain unestablished in the North. Given that packers haven't shown much activity yet in the cash market, it's looking like the week's trade could be delayed another day at least.
Boxed beef prices are lower: choice down $1.68 ($314.13) and select down $0.15 ($299.47) with a movement of 70 loads (46.79 loads of choice, 16.10 loads of select, zero loads of trim and 7.25 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex continues to trade lower as the market simply cannot gain any technical footing following Monday's sharp sell off. One might question why the feeder cattle complex isn't finding merit in the fact that the deferred live cattle contracts are trading slightly higher, but at this point I'd argue that the market's leeriness and caution continues to outweigh the slightly higher tone currently being seen in the live cattle complex. August feeder cattle are down $0.12 at $242.87, September feeders are down $1.15 at $239.40 and October feeders are down $1.17 at $237.85.
LEAN HOGS:
The lean hog complex has taken a sluggish approach thus far to Wednesday's market as the contracts are trading fully lower into the noon hour. August lean hogs are down $0.75 at $90.47, October lean hogs are down $1.45 at $74.95, and December lean hogs are down $1.32 at $67.60. More than anything it seems as though traders haven't found enough support in the market to help them break the complex out of its current sideways trading range. There's a chance that Thursday's export sales report could lend some support, but that's yet to be seen.
The projected lean hog index for 8/6/2024 is down $0.23 at $93.10, and the actual index for 8/5/2024 is down $0.26 at $93.33. Hog prices are unavailable due to confidentiality on the Daily Direct Morning Hog Report. However, we can see that 2,115 head have traded, and that the market's five-day rolling average now sits at $81.43. Pork cutouts total 158.83 loads with 141.80 loads of pork cuts and 17.03 loads of trim. Pork cutout values: up $0.33, $102.64.
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