GENERAL COMMENTS:
The livestock complex is seeing a lower tone spread across both the live cattle and lean hog contracts, while the feeder cattle market takes advantage of cheaper corn. The cash cattle market has seen a thin volume traded in Nebraska, but otherwise the market is still largely untested and undeveloped. December corn is down 5 3/4 cents per bushel and December soybean meal is down $3.90. The Dow Jones Industrial Average is down 138.57 points.
LIVE CATTLE:
Live cattle futures are trending slightly lower into Thursday afternoon as the market is beginning to see cash cattle trade develop in the North for $1.00 to $2.00 lower than last week. The South has yet to sell any cattle and it seems as though Southern feedlots are dead set on getting their early asking prices of $143 to $144. Packers know in the weeks ahead they won't be able to control the market as much as beef demand through September is usually slow and they're still able to play off the shortened week thanks to Labor Day. But as the market gets closer to October and market-ready supplies run even thinner, feedlots will then sit in the driver's seat of the cash cattle market and prices are expected to get substantially higher. October live cattle are down $0.15 at $144.07, December live cattle are down $0.32 at $149.75, and February live cattle are down $0.40 at $154.10.
Boxed beef prices are lower: choice down $2.29 ($259.05) and select down $0.72 ($236.79) with a movement of 96 loads (66.52 loads of choice, 15.83 loads of select, 6.89 loads of trim and 6.30 loads of ground beef).
FEEDER CATTLE:
As the corn market trends 5 to 7 cents lower in its nearby contracts, the feeder cattle futures are rallying modestly after Wednesday's weak performance. September feeders are up $0.15 at $182.17, October feeders are up $0.40 at $184.35 and November feeders are up $0.42 at $185.87. Even with cash cattle trade developing in the North for $1.00 to $2.00 lower than last week's business, the feeder cattle market should be able to keep its upward ascent as feedlots knew their chances of getting more money this week in the cash market was slim.
LEAN HOGS:
After the sharp descent the market endured two weeks ago, the lean hog complex is now trading in a choppy, sideways pattern as it looks for any little crumb of support. October lean hogs are down $0.02 at $91.05, December lean hogs are down $0.57 at $83.02, and February lean hogs are down $0.35 at $87.07. With both cash prices and pork cutout values cheaper Thursday morning, it isn't shocking to see the contracts falling lower and it's likely that this doggish, uneventful demeanor sticks with the market through the week and until packers see more margin.
The projected CME Lean Hog Index for 9/7/2022 is down $1.22 at $100.26, and the actual index for 9/6/2022 is down $1.78 at $101.48. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.29 with a weighted average of $94.18, ranging from $88.00 to $105.00 on 5,373 head and a five-day rolling average of $95.93. Pork cutouts total 169.02 loads with 145.73 loads of pork cuts and 23.29 loads of trim. Pork cutout values: up $0.97, $104.12.
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