GENERAL COMMENTS:
It's a slow and mundane day for the livestock complex as traders aren't willing to engage in the week's trade just yet. Even though corn prices are trading lower, traders almost seem leery of overly supporting the market this week. December corn is down 3 1/4 cents per bushel and December soybean meal is up $3.30. The Dow Jones Industrial Average is down 12.26 points.
LIVE CATTLE:
The live cattle complex is trading cautiously Monday morning as the market is waiting for traders to engage. It was encouraging that feedlots held off trading cattle until late in the week again last week, and largely their patience was rewarded as cattle traded steady in the South and steady to $3.00 higher in the North. The disappointing factor of last week's market was that processing speeds were reduced substantially (603,000 head for the week) -- which could put some pressure on showlists if packers maintain that pace for very long. So once again, the market will continue to wait on processing speeds and beef demand vigilantly this week. August live cattle are down $0.22 at $180.15, October live cattle are down $0.20 at $181.12 and December live cattle are down $0.17 at $185.27.
Last week packers and feedlots again went toe-to-toe and trade was delayed until Friday. Northern dressed cattle traded for $292 to $300, but most at $295 to $300, which is steady to $3.00 higher than the prior week's weighted average. Southern live cattle traded even later than the North, and sold for $180 to $185, but mostly at $180, which is steady with the previous week's weighted average.
Boxed beef prices are higher: choice up $2.68 ($305.29) and select up $2.38 ($279.61) with a movement of 44 loads (24.98 loads of choice, 7.68 loads of select, 6.80 loads of trim and 4.86 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex also is trading lower as feeders wait for traders to engage in this week's battle. With corn prices lower and demand utterly outstanding in the country, traders should be able to maintain these price levels. August feeders are down $1.15 at $246.60, September feeders are down $1.00 at $250.45 and October feeders are down $0.62 at $252.25. There will be another Cattle on Feed report released later this week, which could lend the market some additional support if placements are lower.
LEAN HOGS:
The lean hog market is taking the brunt of Monday's hardship as its market is trading anywhere from $1.00 to $2.00 lower. Yes, pork cutout values are higher, but with such volatility affecting the market, from drastic swings in the belly primarily, traders are remaining cautious. October lean hogs are down $2.22 at $79.07, December lean hogs are down $2.02 at $72.47 and February lean hogs are down $1.72 at $76.85.
The projected CME Lean Hog Index for 8/11/2023 is down $0.49 at $102.57, and the actual index for 8/10/2023 is down $0.85 at $103.06. Hog prices are higher on the Daily Direct Morning Hog Report, up $4.73 with a weighted average price of $100.92, ranging from $95.00 to $106.00 on 395 head and a five-day rolling average of $98.69. Pork cutouts total 111.10 loads with 96.89 loads of pork cuts and 14.21 loads of trim. Pork cutout values: up $7.70, $117.78.
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