GENERAL COMMENTS:
The livestock complex is trading higher into Friday's noon hour as corn prices continue to trend mostly steady. No new cash cattle trade has been reported but more trade will likely develop later this afternoon. December corn is up 3/4 cent per bushel and December soybean meal is up $2.20. The Dow Jones Industrial Average is up 176.55 points.
LIVE CATTLE:
Seeing the continued support traders are throwing at the live cattle market is invigorating as traders seem to be looking beyond the technical pressure endured last week and instead fixating their attention on the market's strong long-term fundamentals. Still, no new cash cattle trade has been reported as feedlots simply refuse to puke cattle to packers. Packers would love nothing more than to be able to work the cash cattle complex $5.00 lower on a weekly basis over the next month or so, but feedlots are making that wish seem somewhat far-fetched at this point. Bids of $185 live and $292 dressed are currently being offered in Nebraska, but the market is still dead silent in the South. Asking prices in the South are noted at $180 to $182, and in the North at $294 plus. It's going to be a waiting game to see who wins this week's war. Will packers up their bids to ensure they get cattle bought? Or will feedlot managers let some cattle trade just to ensure their showlists don't become burdensome? Or last, but certainly not lacking any excitement, will this week's market be thinly traded and both parties saddle up nearly next week for a continued cage fight? Time will tell friends, don't go anywhere too soon.
A light to moderate trade was reported in the North Thursday afternoon at $292 dressed which is $3.00 lower than last week's weighted average. October live cattle are up $0.20 at $180.90, December live cattle are up $0.25 at $184.77 and February live cattle are up $0.27 at $188.87.
Boxed beef prices are higher: choice up $0.20 ($317.83) and select up $0.24 ($292.15) with a movement of 62 loads (50.60 loads of choice, 7.40 loads of select, zero loads of trim and 4.42 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is loving the support that's trickling into its market as traders note the continued support currently being seen in the live cattle complex, and in mostly steady corn prices. September feeders are down $0.02 at $250.72, October feeders are up $0.17 at $253.45 and November feeders are up $0.45 at $254.80. It's encouraging to see traders willing to support the feeder cattle late in the week as temperatures have been hot this week and cash cattle prices showing slightly weaker tones. But even so, the continued support of aggressive feeder cattle buying in the countryside cannot be overlooked nor downplayed as buyers are continuing to shell out money for both feeders and calves as they know supplies are only going to grow increasingly thin the later we get into 2023.
LEAN HOGS:
The lean hog complex is back to rallying as traders see the steady trade in corn prices as an opportunity on which they need to capitalize. October lean hogs are up $1.70 at $82.17, December lean hogs are up $2.00 at $73.90 and February lean hogs are up $2.00 at $77.95. The spot October contract is flirting with closing above the market's nearby resistance at $82.00, but it wouldn't be surprising to see traders round out Friday's close right below that threshold and look for support nearly next week to decide if that's a good decision or not. At this point technically there's enough support in the market for traders to push the contract above that level, but fundamentally speaking, support is lacking.
The projected lean hog index for 8/24/2023 is down $1.22 at $95.18, and the actual index for 8/23/2023 is down $0.90 at $96.40. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.25 with a weighted average price of $84.60, ranging from $81.00 to $87.00 on 1,458 head and a five-day rolling average of $88.11. Pork cutouts are unavailable as the USDA seems to be experiencing technical issues.
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