GENERAL COMMENTS:
It was a mixed day for the livestock complex as some of the markets found trader support, but others didn't. Heading into Wednesday's market packer interest could improve although it's likely that trade will still be delayed until Thursday or later. 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:
Tuesday's market was lackluster for the live cattle complex as the nearby contracts closed lower while the deferred months closed slightly higher. Traders attempted to trade the nearby contracts higher several different times, but without enough fundamental support surfacing and traders remaining skeptical market participants, it simply wasn't in the cards today to close with confidence. October live cattle closed $0.60 lower at $176.32, December live cattle closed $0.37 lower at $176.42 and February live cattle closed $0.22 lower at $177.52. The cash cattle market was quiet throughout all of the day as no bids have surfaced yet. Packer interest may improve on Wednesday as showlists are lighter in all of the feeding regions -- but it's not likely that trade really develops until Thursday or Friday. Asking prices are noted at $182 in the South and are still unestablished in the North.
Tuesday's slaughter is estimated at 124,000 head -- 1,000 head less than a week and year ago.
Boxed beef prices closed lower: choice down $0.29 ($308.23) and select down $1.48 ($297.01) with a movement of 147 loads (89.89 loads of choice, 24.01 loads of select, 9.44 loads of trim and 23.16 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to somewhat lower. There's a reality in which feedlot managers could potentially hold this week's market steady as showlists are lighter in all major feeding regions, but packers will work diligently to keep the cash market's trend trading lower.
FEEDER CATTLE:
Even though the nearby live cattle contracts struggled to close higher, the feeder cattle complex charged on throughout the day touting higher prices. Thankfully traders took the strong momentum built in Monday's market and continued to rally on through Tuesday's close. With the complex being far away from resistance pressures, there's plenty of room to trade higher so long as traders remain active and engaged. September feeders closed $0.75 higher at $238.47, October feeders closed $0.67 higher at $235.40 and November feeders closed $0.45 higher at $232.27. At Joplin Regional Stockyards in Carthage, Missouri compared to their last sale two weeks ago feeder steers sold inconsistently as prices were marked anywhere from $5.00 lower to $6.00 higher. Feeder heifers traded $3.00 to $8.00 lower. Feeder cattle supply over 600 pounds was 74%. The CME feeder cattle index 9/9/2024: down $0.93, $242.99.
LEAN HOGS:
It was a better day for the lean hog complex as the market was able to close mixed, despite the fact that pork cutout values closed lower. October lean hogs closed $0.25 lower at $78.55, December lean hogs closed $0.05 higher at $71.15 and February lean hogs closed $0.12 higher at $75.05. The biggest deterrent in the carcass price's ability to close higher this afternoon was the fact that the ham alone closed $2.75 lower, and the picnic also added some pressure with its $1.12 lower end. It wouldn't be surprising to see Wednesday's market pressured as traders have been closely watching demand and want to see consistent consumer support. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.14 with a weighted average price of $78.34 on 11,697 head. Pork cutouts totaled 434.32 loads with 385.10 loads of pork cuts and 49.22 loads of trim. Pork cutout values: down $0.92, $94.80. Tuesday's slaughter is estimated at 484,000 head – steady with a week ago but 3,000 head more than a year ago. The CME lean hog index 9/6/2024: down $0.50, $85.74.
WEDNESDAY'S HOG CALL: Steady. Packers were undoubtedly short bought heading into this week's market, and although they've been active already this week in the cash sector -- they could still be buying throughout Wednesday's market.
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