GENERAL COMMENTS:
Thus far it's been a strong, supportive day for the livestock complex as all three of the markets are trading higher. Still no cash cattle trade has developed, but it's looking like feedlots may be able to pull off steady trade this week with the board's support. December corn is up 2 3/4 cents per bushel and December soybean meal is up $3.00. The Dow Jones Industrial Average is up 169.17 points.
LIVE CATTLE:
It's exciting to see the live cattle complex continue to trade higher and especially to see the spot October contract trading above the market's 100-day moving average. August live cattle are up $0.70 at $184.70, October live cattle are up $1.50 at $182.25, and December live cattle are up $1.67 at $181.97. At this point, Wednesday's movement seems strong and confident and appears as though the market will be able to maintain this position through closing. If the market is indeed able to close higher and show some technical strength, that's another feather added to the cash cattle market's hat that could encourage feedlot managers to hold out for at least steady prices this week. No cash cattle sales have been reported yet as the waiting game between packers and feedlot managers continues. Asking prices are noted in the South at $187 to $188 but are not yet established in the North. Packer interest could begin to improve Wednesday afternoon, but at this point it's looking like trade will be delayed until Thursday or potentially even Friday.
Boxed beef prices are mixed: choice down $2.30 ($314.63) and select up $0.45 ($301.06) with a movement of 90 loads (68.39 loads of select, 16.53 loads of select, zero loads of trim and 4.74 loads of ground beef).
FEEDER CATTLE:
With the added support of the live cattle complex's higher trend, the feeder cattle market is keeping with Tuesday's tone as it continues to trade higher. August feeder cattle are up $2.07 at $248.55, September feeders are up $2.90 at $245.07 and October feeders are up $2.60 at $242.52. Traders seem to be acknowledging the market's strong fundamental support, which continues to be seen in strong feeder cattle sales in the countryside, which consequently is also allowing the feeder cattle contracts to trade higher and regain some position lost from last week's plumet.
LEAN HOGS:
After enduring some pressure throughout Tuesday's trade, the lean hog market is back to trading fully higher Wednesday. October lean hogs are up $2.85 at $75.70, December lean hogs are up $2.22 at $66.97, and February lean hogs are up $2.02 at $70.47. Traders may have been somewhat concerned about Monday's WASDE report and the weaker demand forecast it shared, but with the added support of better consumer interest this week, stronger pork cutout values are seeming to add support to today's market.
The projected CME Lean Hog Index for 8/13/2024 is down $0.16 at $90.18, and the actual index for 8/12/204 is down $0.58 at $90.34. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.28 with a weighted average price of $83.52, ranging from $79.00 to $84.50 on 791 head and a five-day rolling average of $83.59. Pork cutouts total 189.80 loads with 166.82 loads of pork cuts and 22.98 loads of trim. Pork cutout values: up $0.53, $100.86.
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