GENERAL COMMENTS:
The entire market is breathing a little easier now as a tentative deal has been reached to avert a railroad strike. The cash cattle market has received more interest and Southern cattle are even trading for $1.00 higher than last week's weighted average. December corn is down 1 cent per bushel and December soybean meal is up $7.10. The Dow Jones Industrial Average is down 146.23 points.
LIVE CATTLE:
The cash cattle market has seen packers show a little more interest, and Southern cattle have even begun to trade higher. Southern live cattle are trading for $142, which is $1.00 higher than last week's weighted average. Still, Northern dressed cattle are continuing to sell for mostly $226, which is steady with both Wednesday's business and last week's market. Largely there hasn't been many cattle traded at this point and it's likely that if packers are desperate enough for cattle that even Northern deals could grow stronger by the day's end. Asking prices remain firm at $143 to $144 in the South and $230 plus in the North. October live cattle are traded $0.97 higher at $145.32, December live cattle are trading $1.00 higher at $151.05 and February live cattle are trading $0.67 higher at $155.15. It will be interesting to see what carcass weights amount to this week, as over the last two weeks, they've been slightly higher while choice/prime grading percentages have fallen.
Beef net sales of 15,100 mt for 2022 were primarily for South Korea (6,700 mt), Japan (4,200 mt) and Mexico (1,700 mt).
Boxed beef prices are mixed: choice down $0.64 ($252.83) and select up $0.42 ($230.53) with a movement of 74 loads (46.12 loads of choice, 15.61 loads of select, 3.48 loads of trim and 9.12 loads of ground beef).
FEEDER CATTLE:
Even with the note of a tentative deal being reached with the railroads, and even with Southern live cattle trading higher, the feeder cattle market isn't enthused with Thursday whatsoever. September feeders are down $0.82 at $179.15, October feeders are down $1.05 at $180.37 and November feeders are down $0.70 at $182.27. The corn complex is trending just slightly below steady, which could be part of the reason why the feeder cattle market is leery as any higher run in corn prices will be seen as pressuring to the feeder cattle market.
LEAN HOGS:
The lean hog complex is running higher into Thursday's afternoon as traders and hog producers are thrilled with Thursday's export report. October lean hogs are up $1.90 at $96.60, December hogs are up $2.92 at $88.22 and February lean hogs are up $2.22 at $91.62. In combination with the board's stronger trade and the interest that the cash market saw Wednesday, the lean hog complex has regained so spirit. If pork cutout values can close slightly higher this afternoon, that may be enough support to keep the market trading higher into Friday.
Pork net sales for 25,100 mt for 2022 were primarily for Mexico (9,900 mt), China (4,700 mt) and Japan (4,700 mt).
The projected lean hog index for Sept. 14 is up $0.19 at $97.77, and the actual index for Sept. 13is down $0.09 at $97.58. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.03 with a weighted average of $94.99, ranging from $86.00 to $102.00 on 6,908 head and a five-day rolling average of $94.19. Pork cutouts total 143.61 loads with 126.31 loads of pork cuts and 17.31 loads of trim. Pork cutout values: down $0.71, $106.17.
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