GENERAL COMMENTS:
The livestock complex rounded out the day mixed as the cattle contracts were able to recover some position lost following last week's plumet on Thursday and Friday. But the lean hog market still ended the day softer as the carcass prices closed lower. December corn is up 1 cent per bushel and December soybean meal is up $0.60. The Dow Jones Industrial Average is up 484.18 points.
LIVE CATTLE:
The live cattle complex was able to rally throughout Monday's market as traders aimed to recover some position following last week's derailment. The question that will have to be answered with time is whether or not this bottom, this support plane, is one that will be respected long term. Because with the futures complex on edge thanks to external pressures surrounding the weakened economy and normal market jitters leading up to the election, there are plenty of stumbling blocks lining the way of the live cattle complex. October live cattle closed $1.75 higher at $176.92, December live cattle closed $2.10 higher at $176.80 and February live cattle closed $2.35 higher at $177.75. No bids or asking prices are posted yet and trade will likely be delayed until sometime after Wednesday. Monday's slaughter is estimated at 114,000 head -- incomparable to last week but 11,000 head more than a year ago.
Last week Southern live cattle traded for mostly $181, which is $2.00 lower than the previous week's weighted average, and Northern dressed cattle traded for mostly $288, which is also $2.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 67,595 head. Of that 68% (45,760 head) were committed to the nearby delivery, while the remaining 32% (21,835 head) were committed to the deferred delivery.
Boxed beef prices closed mixed: choice down $0.89 ($308.52) and select up $2.37 ($298.49) with a movement of 141 loads (71.33 loads of choice, 38.34 loads of select, 13.89 loads of trim and 16.96 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to somewhat lower. Given that packers have built up supply around them, it's likely that they'll be able to keep the cash market from trading any better than steady this week.
FEEDER CATTLE:
The feeder cattle complex was able to close higher thanks to the willingness of traders and the added support from the live cattle market's higher end. September feeders closed $3.42 higher at $237.72, October feeders closed $3.77 higher at $234.72 and November feeders closed $3.80 higher at $231.82. In the countryside buyers noted an influx of calves as it's apparent that the fall run is beginning to kick off already this year. Some buyers may see this as an opportunity to get some cheaper calves bought compared to how the market traded earlier this year. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to their sale two weeks ago, feeder steers traded $1.00 to $5.00 lower but feeder heifers over 800 pounds sold with a firm undertone. Feeder heifers under 800 pounds traded $2.00 to $7.00 lower. Steer and heifer calves both traded $5.00 to $10.00 lower. Feeder cattle supply over 600 pounds was 55%. The CME feeder cattle index 9/6/2024: up $1.74, $243.92.
LEAN HOGS:
The lean hog complex saw some pressure on its nearby contracts, but by the day's end the market's deferred contracts were able to at least close higher. October lean hogs closed $0.70 lower at $78.80, December lean hogs closed $0.12 lower at $71.10 and February lean hogs closed $0.02 higher at $74.92. It was a little disappointing to see pork cutout values close lower as demand has been strong for the hog complex here as of late. Traders will continue to watch the afternoon carcass price carefully throughout the week as demand will largely dictate the direction of the market. Hog prices closed higher on the Daily Direct Afternoon Hog report, up $1.69 with a weighted average price of $78.48 on 5,967 head. Pork cutouts totaled 278.80 loads with 235.96 loads of pork cuts and 42.84 loads of trim. Pork cutout values: down $0.38, $95.72. Monday's slaughter is estimated at 486,000 head -- incomparable to last week but 21,000 head more than a year ago. The CME lean hog index 9/5/2024: down $0.19, $86.24.
TUESDAY'S HOG CALL: Steady. Packers were more aggressive in Monday's market than normal, which could mean that they're short bought.
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