GENERAL COMMENTS:
Thus far both the lean hog and feeder cattle contacts have found modest support throughout the morning which has helped the contracts maintain a higher position through the morning's trade. Meanwhile, the live cattle contracts are slow to turn to higher trade as traders desperately yearn to see substantial fundamental support before they do so. December corn is down 3 1/4 cents per bushel and December soybean meal is down $0.90. The Dow Jones Industrial Average is up 117.14 points.
LIVE CATTLE:
The live cattle complex is the last in the livestock marketplace to jump on board with the notion that higher trade is the aim for Monday. One would think that traders would find it encouraging that packers weren't able to get many cattle bought last week for the deferred delivery option, and that already this morning that midday boxed beef prices are higher. But nevertheless, the live cattle contracts are dragging their feet as the complex is entering Monday's noon hour lower. October live cattle are down $0.42 at $177.22, December live cattle are down $0.20 at $178.30 and February live cattle are down $0.30 at $179.37. Please note that on Friday the month's Cattle on Feed data will be released.
Last week Southern live cattle traded at mostly $181 which is mostly steady with the previous week's weighted average, and Northern dressed cattle traded at mostly $288 which is also steady with the previous week's weighted average. Last week's negotiated cash cattle trade totaled 61,496 head. Of that 83% (51,181 head) were committed to the nearby delivery, while the remaining 17% (10,315 head) were committed to the deferred delivery.
Boxed beef prices are higher: choice up $0.06 ($304.97) and select up $1.63 ($295.80) with a movement of 83 loads (52.08 loads of choice, 7.65 loads of select, 2.68 loads of trim and 20.30 loads of ground beef).
FEEDER CATTLE:
Even with the live cattle contracts trading lower into Monday's noon hour, the feeder cattle contracts are maintaining a modest rally into the afternoon. The spot October contract is hesitant to take on the market's resistance at its 40-day moving average, which could cause the market to simply maintain a slightly higher tone through the day's end but to ultimately chop sideways until traders determine if there's enough support in the market to take on the threshold. October feeders are up $0.17 at $239.30, November feeders are up $0.30 at $235.50 and January feeders are up $0.10 at $230.70.
LEAN HOGS:
The lean hog complex has traded back and forth throughout the morning and as the day's noon hour nears, traders are seeming to comfortably allow the nearby contracts to trade higher. Thankfully the spot October contract is far from its resistance, so if trader interest does grow stronger, the market shouldn't have any issue closing higher as there's ample room technically for the contracts to do so. Plus, it's also helpful that morning pork cutout values are higher as last week's demand wasn't as strong as traders nor packers had hoped for. October lean hogs are up $0.90 at $79.32, December lean hogs are up $0.47 at $71.77 and February lean hogs are up $0.17 at $75.15.
The projected lean hog index for 9/13/2024 is down $0.49 at $84.38, and the actual index for 9/12/2024 is down $0.48 at $84.87. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.94 with a weighted average price of $75.00 on 358 head and a five-day rolling average of $77.21. Pork cutouts total 208.20 loads with 188.10 loads of pork cuts and 20.10 loads of trim. Pork cutout value: up $1.09, $94.99.
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