GENERAL COMMENTS:
It was a back-and-forth day for the cattle complex, but thankfully by the day's end the market closed higher. A few cash cattle sales were reported in Kansas, but overall, the market has yet to trade. December corn is up 1/2 cent per bushel and December soybean meal is up $2.50. The Dow Jones Industrial Average is up 124.75 points.
LIVE CATTLE:
The live cattle complex was able to round out the day higher after all as trades ultimately decided to leave their concerns about what the Federal Reserve is going to do with interest rates later this month fall to the back burner. But once the equity markets began to rebound, so did the live cattle complex. October live cattle closed $0.62 higher at $176.95, December live cattle closed $0.80 higher at $177.22 and February live cattle closed $0.80 higher at $178.32. There were a few cash cattle sales posted in the South at $180 which is $1.00 lower than last week's weighted average, but overall, the market saw mostly quiet throughout the day. Bids of $292 dressed and $178 live were offered in Nebraska, but feedlot managers let those offers grow cold.
Wednesday's slaughter is estimated at 124,000 head -- 1,000 head less than a week ago and 3,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.87 ($307.36) and select down $2.63 ($294.38) with a movement of 162 loads (108.50 loads of choice, 28.36 loads of select, 3.74 loads of trim and 21.44 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Given that feedlot managers weren't overly concerned about taking packers up on their early offers, it's likely that trade could hold steady this week.
FEEDER CATTLE:
Once the live cattle complex began to trade higher and shook the bearishness and concerns over what the Feds could potentially do with interest rates later this month, the market kicked it into high gear and closed anywhere from $1.00 to $2.00 higher. September feeders closed $2.07 higher at $240.55, October feeders closed $2.10 higher at $237.50 and November feeders closed $1.75 higher at $234.02. Wednesday's close was considerable, but traders won't come up against resistance until they near $240.00 in the spot October contract. At Winter Livestock Auction in Dodge City, Kansas compared to last week feeder steers under 850 pounds weren't well tested, but steers over 850 pounds sold $3.00 higher. Heifers under 650 pounds weren't well tested but heifers over 650 pounds sold $4.00 higher. Slaughter cows sold $8.00 lower, but bulls traded only $3.00 lower. Feeder cattle supply over 600 pounds was 65%. The CME feeder cattle index 9/10/2024: up $0.05, $243.04.
LEAN HOGS:
The lean hog complex was able to maintain its slightly higher tone through Wednesday's close even though pork cutout values closed lower yet again. Some of the furthest deferred months closed mildly lower, but overall, the market triumphed through the day's end. October lean hogs closed $1.20 higher at $79.75, December lean hogs closed $1.15 higher at $72.30 and February lean hogs closed $0.77 higher at $75.82. Heading into Thursday's market traders will be quick to search for the week's export data as demand domestically has been lacking this week. Various cuts have closed lower throughout the week but overall, it's been a disappointing week for consumer demand here in the states for pork. But with the loin dropping $5.86, and the rib dropping $5.91 -- the carcass price stood no chance at rounding out the day higher. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.09 with a weighted average price of $77.25 on 5,545 head. Pork cutouts totaled 376.06 loads with 209.80 loads of pork cuts and 66.26 loads of trim. Pork cutout values: down $1.89, $92.91. Wednesday's slaughter is estimated at 483,000 head -- 2,000 head less than a week ago and 6,000 head more than a year ago. The CME lean hog index 9/9/2024: down $0.18, $85.56.
THURSDAY'S HOG CALL: Lower. Given that packers were aggressive earlier in the week, it's likely that they've fulfilled their cash needs for the week and that prices will trend lower.
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