GENERAL COMMENTS:
Even with the corn complex trending higher, both the live cattle and feeder cattle contracts are trading higher into Friday's afternoon. The market has faced various pressures throughout the week, but contracts holding support levels is extremely encouraging. December corn is up 7 1/2 cents per bushel and December soybean meal is up $1.20. The Dow Jones Industrial Average is up 197.29 points.
LIVE CATTLE:
Regardless of the pressures in the boxed beef market and cash market this past week, the October live cattle contract has held above support levels and is showing promise in Friday's market as the complex is beaming green as it heads into the afternoon. October live cattle are up $1.77 at $144.57, December live cattle are up $1.62 at $150.20 and February live cattle are up $1.07 at $154.20. Holidays usually throw a wrinkle into the cattle market, and we evidently saw that over the past two weeks, but as the market looks to next week and what it may bring, feedlots are ready to get back to business and will likely price cash cattle higher as packers have been sheepish buyers as of late and will likely need the cattle. The cash cattle market hasn't seen any renewed interest and it's likely that this week's business is done with. Throughout the week, Southern live cattle have traded for $141, which is $1.00 lower than last week's weighted average, and Northern cattle have traded for $228, which is $5.00 lower than last week's weighted average.
Boxed beef prices are higher: choice up $1.90 ($259.97) and select up $1.72 ($238.31) with a movement of 51 loads (25.84 loads of choice, 9.65 loads of select, 5.50 loads of trim and 9.66 loads of ground beef).
FEEDER CATTLE:
Surprisingly the feeder cattle market is rallying into Friday's afternoon, even with the complex pushing a $0.08 to $0.11 rally in its nearby contracts. When the market dropped lower last Friday and first thing this week on Monday, ever since then the feeder cattle complex has slowly but surely been able to add a little to its position as feeder cattle demand remains strong and the market's long-term trajectory of higher prices isn't wavering. September feeders are up $0.45 at $183.60, October feeders are up $0.35 at $184.67 and November feeders are up $0.27 at $185.97. If the cash cattle market is able to rally next week and see better interest in the live cattle contracts too, then the feeder cattle market will be even more anxious to trade higher as buyers could potentially see more profit in the deferred live cattle sector.
LEAN HOGS:
The lean hog market is keeping with its descend into Friday's afternoon as the market has seen immense pressure this week. With packer margins below $10.00 per carcass, it makes sense why running after hogs in the cash market wasn't on packers' to-do list this past week. It's likely that the cash market continues to see hit and miss demand from packers over the next couple of weeks, as packers can dip into cold storage supplies to avoid running after the cash market. October lean hogs are down $2.10 at $89.82, December lean hogs are down $1.45 at $82.32 and February lean hogs are down $1.32 at $86.22.
The projected lean hog index for Sept. 1 is down $1.52 at $104.74 and the actual index for Aug. 31 is down $1.36 at $106.26. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.74 with a weighted average of $96.60, ranging from $94.00 to $120.00 on 2,640 head and a five-day rolling average of $103.63. Pork cutouts total 180.41 loads with 157.27 loads of pork cuts and 23.14 loads of trim. Pork cutout values: up $0.31, $102.17.
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