GENERAL COMMENTS:
The cattle market's upside run was shaken by Tuesday's mind-blowing rally in the corn complex. Given that this week sits in front of Labor Day, it makes sense that packers aren't as aggressive in the cash market since they have dark days planned ahead. December corn is up 2 cents per bushel and December soybean meal is up $1.40. The Dow Jones Industrial Average is up 130.77 points.
LIVE CATTLE:
The live cattle complex is trending lower into Wednesday's afternoon as the market has a doggish tone cast over its marketplace. The market's fundamentals are still strong: showlists are extremely current, beef demand is stable and processing speeds are running vigorously, but as traders look at the lackadaisical cash cattle market and bumpy ride that the market took on Tuesday -- thanks to higher corn -- traders are leery. October live cattle are down $0.80 at $143.80, December live cattle are down $0.65 at $150.02 and February live cattle are down $0.40 at $154.55. The cash cattle market has a few bids sitting on the table, but at this point, feedlots seem uninterested in their presence. Bids of $148 live and $230 dressed are being offered in Nebraska, but otherwise the market is idle. It's not surprising to see that packers haven't shown much interest in this week's cash cattle market as they're buying for short kill weeks (both this week and next). More business is likely to develop but this week's trade will likely be well below 100,000 head.
Boxed beef prices are mixed: choice up $0.43 ($263.23) and select down $0.25 ($238.55) with a movement of 68 loads (34.30 loads of choice, 14.34 loads of select, 7.60 loads of trim and 11.68 loads of ground beef).
FEEDER CATTLE:
The corn complex isn't as sporty as it was in Tuesday's market -- it's trending steady to $0.02 lower in its nearby contracts, but still the feeder cattle contracts are seeming to lick their wounds thus far through Wednesday's market as they trend slightly lower into the afternoon. The cattle market is far better at this point than what it was a year ago, but still with heightened input costs for everything, cattlemen and traders alike are leery of the marketplace Wednesday as their concerns of higher feed prices lingers. September feeder cattle are down $0.10 at $182.35, October feeder cattle are down $0.30 at $184.15 and November feeder cattle are down $0.47 at $185.95.
LEAN HOGS:
The lean hog complex isn't trending well into Wednesday's afternoon, keeping with its descend as the market absorbs Tuesday's horrendous close for pork cutouts. October lean hogs are down $2.32 at $90.57, December lean hogs are down $1.90 at $82.32 and February lean hogs are down $1.47 at $86.10. The day has seen a sizeable movement of hogs, but the market is only trending $4.86 higher from Tuesday's market as packers have been able to slightly pump the brakes on the cash market. Thursday morning the hog complex is hopeful for a strong export report but knows that limited interest could be possible as other countries offer cheaper product.
The projected lean hog index for Aug. 23 is down $1.18 at $118.00 and the actual index for Aug. 23 is down $0.80 at $119.18. Hog prices are higher on the Daily Direct Morning Hog Report, up $4.86 with a weighted average of $126.14, ranging from $111.50 to $133.00 on 19,383 head and a five-day rolling average of $123.14. Pork cutouts total 141.34 loads with 119.69 loads of pork cuts and 21.65 loads of trim. Pork cutout values: down $0.57, $104.51.
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