GENERAL COMMENTS:
All in all, it was a winning day for the livestock complex as traders supported the contracts and all three livestock markets were able to close higher Thursday. Cash cattle prices were tested in the North and prices were lower there, but that didn't have a negative effect on the futures complex. Hog prices are unavailable on the Daily Direct Afternoon Hog Report due to packer submission issues. December corn is down 2 1/4 cents per bushel and December soybean meal is up $11.30. The Dow Jones Industrial Average is down 252.39 points.
LIVE CATTLE:
Temperatures may be sweltering, and feedlot managers are praying that the weather breaks soon, but that didn't have a negative effect on the live cattle contracts in Thursday's trade. Traders supported the live cattle contracts throughout Thursday, which not only stands as a victory for the day, as cash cattle prices were pushed slightly lower, but also for the market's overall morale as traders seem to be establishing a bottom in the market's current trading range. October live cattle closed $2.05 higher at $180.72, December live cattle closed $1.60 higher at $184.52 and February live cattle closed $1.40 higher at $188.60. A light trade was reported throughout the day in Nebraska at $292, which is $3.00 lower than last week's weighted average. Asking prices in the South remain firm at $180 to $182 and $294 plus in the North. It's looking like trade will be slightly softer in terms of prices this week, but feedlots have done a tremendous job at only letting packers take a little here and there out of the market as opposed to hard $5.00 cuts each and every week.
Thursday's slaughter is estimated at 124,000 head, 2,000 head more than a week ago and steady with a year ago.
Thursday's actual slaughter data shared that, for the week ending Aug. 12, steers averaged 901 pounds, which is 6 pounds more than a week ago but steady with a year ago. During the same week, heifers averaged 820 pounds, which is 9 pounds more than the previous week but still 2 pounds less than a year ago.
Beef net sales of 11,400 mt for 2023 were down 25% from the previous week and 28% from the prior four-week average. The three primary buyers were South Korea (4,200 mt), Japan (2,300 mt) and Hong Kong (1,300 mt).
Boxed beef prices closed higher: choice up $0.58 ($317.63) and select up $0.32 ($291.91) with a movement of 102 loads (60.81 loads of choice, 23.24 loads of select, 3.75 loads of trim and 14.62 loads of ground beef).
FRIDAY'S CATTLE CALL: $1.00 to $2.00 lower. Given that packers have been able to get some cattle bought out of the North for cheaper prices, the trend this week will likely be softer.
FEEDER CATTLE:
The feeder cattle complex was quick to rally in Thursday's market as traders showed up ready to play Thursday, and the combination of cheaper corn prices amid a higher trading live cattle complex was just enough to send prices $1.00 to $2.00 higher through closing. September feeders closed $2.17 higher at $250.75, October feeders closed $2.37 higher at $253.25 and November feeders closed $2.35 higher at $254.35. At Clovis Livestock Auction in Clovis, New Mexico, compared to last week, steers weighing 300 to 400 pounds traded steady to $1.00 lower while steers weighing 400 to 500 pounds traded steady to $3.00 lower. Feeder steers weighing 600 to 700 pounds sold softer but those weighing 700 to 800 pounds sold $2.00 to $12.00 higher. Heifer calves weighing 400 to 500 pounds sold $2.00 to $11.00 higher and feeder heifers weighing 600 to 700 pounds sold $7.00 to $12.00 stronger. Feeder cattle supply over 600 pounds was 22%. The CME Feeder Cattle Index for Auh. 23: up $0.39, $245.14.
LEAN HOGS:
Traders helped the lean hog complex close higher despite the market's lack of consistent support in pork cutout prices. October lean hogs closed $1.92 higher at $80.47, December lean hogs closed $0.85 higher at $71.90 and February lean hogs closed $0.57 higher at $75.95. The higher Thursday afternoon carcass price on the pork cutout report is somewhat misleading however as the belly alone jumped $15.24. Even so, gains were seen across all the other cuts except the rib which fell $2.48. Pork cutouts totaled 223.82 loads with 171.80 loads of pork cuts and 52.02 loads of trim. Pork cutout values: up $4.13, $104.92. Thursday's slaughter is estimated at 471,000 head, 5,000 head more than a week ago and 9,000 head less than a year ago. Wednesday's hog slaughter was revised to 464,000 head. The CME Lean Hog Index for Aug. 22: down $0.67, $97.37.
Pork net sales of 33,000 mt for 2023 were up 15% from the previous week and 40% from the prior four-week average. The three primary buyers were Mexico (18,000 mt), South Korea (5,800 mt) and Colombia (3,300 mt).
FRIDAY'S HOG CALL: Lower. Given that pork demand has been hard to come by, it's likely that prices will be lower in Friday's cash market.
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