General Comments
Feeling
more like a Monday than a typical Friday, the livestock complex is left
trading considerably lower into the afternoon hours. Earlier this week
the cattle contracts were feeling all the pressure but as time has
evolved the lean hog complex isn't feeling support by any means as the
spot October contract falls $2.00 lower. October lean hogs are down
$2.10 at $53.625, December corn is down 1 cent per bushel and December
soybean meal is up $5.40. The Dow Jones Industrial Average is up 106.54
points and NASDAQ is up 56.73 points.
LIVE CATTLE
Friday's
live cattle trade has been nothing short of depressing as the complex
continues to fall lower. As nearby contracts range from $102 to $104,
cash cattle trade could be worrisome over the next couple of weeks as
packers sit on a large inventory and the board builds with bearish
chatter. October live cattle are down $1.47 at $104.65, December live
cattle are down $1.10 at $108.22 and February live cattle are down $1.00
at $111.70. The cash cattle market hasn't been the breath of fresh air
the industry would gladly welcome but instead the markets held out to be
quiet through Friday's morning trade. Packers are putting feelers out
throughout the feeding regions to see what's still for sale and who's
willing to sell, but thus far trade has been extremely quiet.
Boxed
beef prices are higher: choice up $0.34 ($231.88) and select up $1.45
($215.71) with a movement of 55 loads (23.54 loads of choice, 9.59 loads
of select, 15.14 loads of trim and 6.54 loads of ground beef).
FEEDER CATTLE
The
feeder cattle complex would love to keep trading higher as cattle
buyers have progressively moved the market higher week after week, but
the lack of support from technical traders leaves the market scaling
lower and lessens buyer's confidence. September feeder cattle are down
$1.15 at $140.07, October feeder cattle are down $0.85 at $140.30 and
November feeder are down $0.95 at $140.65. Unfortunately, the downward
pressure just continues to build and with cash cattle trade weakening,
the market's near future could be a lot of lower moves.
LEAN HOGS
Friday
has been a total let down for the lean hog complex as the market fought
diligently to surpass the resistance at $55.00 but as the bearish
outlook has rooted its core into the heart of the livestock complex, the
lean hog complex has fallen lower. October lean hogs are down $1.95 at
$53.77, December lean hogs are down $1.30 at $55.27 and February lean
hogs are down $0.67 at $62.17. With trade already winding down for the
weekend, there's little hope that the market will rally into the
afternoon and close higher.
The projected
lean hog index for 8/27/2020 is down $0.07 at $57.05, and the actual
index for 8/26/2020 is up $0.26 at $57.12. Hog prices are higher on the
National Direct Morning Hog Report, up $0.41 with a weighted average of
$43.06, ranging from $38.00 to $43.37 on 4,483 head and a five-day
rolling average of $41.71. Pork cutouts total 222.77 loads with 198.89
loads of pork cuts and 23.88 loads of trim. Pork cutout values: down
$0.24, $72.54.
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