GENERAL COMMENTS:
Friday's market lent the livestock complex no favors as the contracts dived lower upon the onset of higher interest rates which created uncertainly throughout the entire marketplace. The cattle complex had even more anxiety heading into the afternoon as it awaited Friday's Cattle on Feed Report. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $7.69 with a weighted average of $86.34 on 3,395 head. December corn is down 11 1/2 cents per bushel and December soybean meal is down $5.60. The Dow Jones Industrial Average is down 486.27 points.
LIVE CATTLE:
With the futures complex plunging lower no matter where you looked, the live cattle complex jumped on the market's lower bandwagon as it was not only concerned about the Fed's interest rate hike but also about what Friday's Cattle on Feed Report would amount to. Thankfully, Friday's Cattle on Feed report came out mostly neutral as placements were slightly higher than a year ago but fed cattle marketings were 6% higher.
October live cattle closed $0.60 lower at $144.25, December live cattle closed $0.80 lower at $148.55, and February live cattle closed $1.07 lower at $152.70. Throughout the week Southern live cattle traded for $143, which is $1.00 stronger than last week's weighted average, and Northern dressed cattle traded for mostly $228, which is also $1.00 stronger than last week's weighted average.
Friday's slaughter is estimated at 125,000 head -- 7,000 head more than a week ago and 14,000 head more than a year ago. Saturday's slaughter is projected to be 33,000 head. This week's slaughter is estimated at 667,000 head -- steady with a week ago and 24,000 head more than a year ago.
Friday's Imported Meat report shared that for the week fresh beef imports totaled 23,568 metric tons with Canada, Mexico and Australia being the biggest importers. Year-to-date fresh beef imports total 867,310 metric tons, which is 8% greater than when compared to a year ago. Processed beef imports for the week total 2,528 metric tons with Brazil contributing 67% of that shipment. Year-to-date processed beef imports total 69,966 metric tons which is 21% greater than when compared to a year ago.
Boxed beef prices closed mixed: choice up $0.23 ($248.63) and select down $2.80 ($219.31) with a movement of 100 loads (50.65 loads of choice, 28.17 loads of select, 8.46 loads of trim and 12.27 loads of ground beef). Throughout the week choice cuts averaged $250.05 (down $4.71 from the week before) and select cuts averaged $224.14 (down $7.08 from the previous week) and the week's movement of cuts, grinds, and trim totaled 765 loads.
MONDAY'S CASH CATTLE CALL: Higher. Given that feedlots were again able to trade cattle higher this week, they'll like set out to price cattle higher next week as they know packers will continue to need the cattle given the chain speeds they're running.
FEEDER CATTLE:
The feeder cattle complex tried to focus on the corn market's 11- to 12-cent plumet through the day's end, but with the added complexity of the raised interest rates, mass selling throughout the futures complex and the unknown nature of the Cattle on Feed report -- the market closed mostly lower. October feeders closed $0.37 higher at $178.35, November feeders closed $0.20 higher at $178.25, and January feeders closed $0.47 lower at $179.47. With corn prices and interest rates being on the forefront of buyers' minds, next week's market will look for support and hopefully the cash cattle market will again trade cattle higher and give traders some comfort. Oklahoma's Weekly Cattle Auction Summary shared that throughout the week feeder steers traded steady to $1.00 lower, except those weighing over 800 pounds which traded $2.00 to $5.00 higher. Feeder heifers traded mostly steady. Steer calves sold steady to $3.00 lower and heifer calves traded steady to $4.00 lower. Slaughter cows sold $2.00 to $5.00 lower and slaughter bulls traded steady. Feeder cattle supply over 600 pounds was 39%. The CME Feeder Cattle Index 9/22/2022: up $0.40, $180.15.
LEAN HOGS:
It was a wild day for the lean hog complex as the market absorbed two news blasts. The first came from China as they released their third batch of pork reserves this month to try to curve rising prices. China was a buyer listed on Thursday's export report, but the market took the news bearishly as exporting product remains crucial to our market's wellbeing. Secondly, news came Friday afternoon that South Korea has confirmed that two large farms have dealt with an outbreak of African swine fever, reported Pigs333. Nevertheless, the market had plenty to absorb this afternoon and given the vast selling that took place in the commodity markets, the lean hog complex followed suit. October lean hogs closed $1.50 lower at $92.62, December lean hogs closed $2.87 lower at $82.80, and February lean hogs closed $2.70 lower at $87.05. Pork cutouts totaled 279.43 loads with 256.56 loads of pork cuts and 22.87 loads of trim. Pork cutout values: down $2.95, $100.93. Friday's slaughter is estimated at 474,000 head - 2,000 head more than a week ago and 3,000 head more than a year ago. Saturday's slaughter is projected to be around 134,000 head. The CME Lean Hog Index 9/21/2022: up $0.05, $98.01.
MONDAY'S CASH HOG CALL: Lower. Packers won't likely show interest in the cash market until Tuesday or later.
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