GENERAL COMMENTS:
The cattle complex was relieved to see trade develop and for prices to remain steady to $3.00 lower across both regions. Meanwhile, the lean hog complex closed lower as traders were exhausted after trading the market higher just Wednesday. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.42 with a weighted average price of $80.13 on 1,688 head. December corn is down 2 1/2 cents per bushel and December soybean meal is down $6.20. The Dow Jones Industrial Average is down 155.05 points.
LIVE CATTLE:
The live cattle complex was relieved to see cash cattle trade develop and for prices to hold fairly firm. In the North, cattle traded for $290, which is $3.00 lower than last week's weighted average, but Southern live cattle traded for $179, which is mostly steady with the previous week's weighted average. And, considering that packers are working with thin margins and that we are in the dog days of summer, it's commendable that feedlots have keep the bottom of this market as strong as they have. Asking prices for left for cattle to sell remain at $181 to $182 in the South and $292 to $294 in the North. October live cattle closed $0.77 higher at $180.82, December live cattle closed $0.57 higher at $184.80 and February live cattle closed $0.50 higher at $188.85.
Thursday's slaughter is estimated at 124,000 head, steady with a week ago and 1,000 head less than a year ago.
Thursday's actual slaughter data shared that, for the week ending Aug. 19, steers averaged 905 pounds, which is 4 pounds heavier than the previous week and 1 pound heavier than a year ago. During the same week, heifers averaged 820 pounds, which is steady with the previous week but 2 pounds lighter than a year ago.
Beef net sales of 18,200 mt for 2023 were up 59% from the previous week and 35% from the prior four-week average. The three largest buyers were China (6,100 mt), Japan (3,400 mt) and South Korea (2,400 mt).
Boxed beef prices closed lower: choice down $1.32 ($313.79) and select down $0.28 ($289.25) with a movement of 105 loads (61.05 loads of choice, 20.55 loads of select, 14.96 loads of trim and 8.82 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Depending on how many more cattle packers need, prices could potentially improve Friday if they're desperate for cattle, but it's more likely that trade remains steady given that prices have been mostly set in both regions.
FEEDER CATTLE:
The feeder cattle complex closed higher as the market was pleased to see the live cattle contracts trade higher and it helped that corn prices again closed lower. Yes, of the cash cattle trade that did develop prices were called steady to $3.00 lower across the two regions, but feeders found that comforting as it beats seeing prices smacked $5.00 to $8.00 lower on any given week. September feeders closed $0.65 higher at $253.27, October feeders closed $0.80 higher at $256.02 and November feeders closed $0.92 higher at $257.65. The CME Feeder Cattle Index for Aug. 30: down $0.20, $248.95.
LEAN HOGS:
It was a tough technical day for the lean hog complex as the nearby contracts were held back and forced to close lower as traders didn't find enough support in the day's fundamentals to deem higher trade appropriate after Wednesday's big run. The further you look into the 2024 contracts, however, the more optimistic traders were through Thursday's end. It's likely that traders believe that the market's uncertainty regarding Prop 12 will be mostly ironed out at that point. October lean hogs closed $1.05 lower at $82.55, December lean hogs closed $0.77 lower at $74.32 and February lean hogs closed $0.40 lower at $78.70. Pork cutouts totaled 248.59 loads with 214.67 loads of pork cuts and 33.92 loads of trim. Pork cutout values: up $0.10, $92.22. Thursday's slaughter is estimated at 469,000 head, 4,000 head more than a week ago and 15,000 head less than a year ago. Wednesday's slaughter was revised to 473,000 head. The CME Lean Hog Index for Aug. 29: down $1.74, $90.67.
Pork net sales of 36,900 mt for 2023 were up 12% from the previous week and 45% from the prior four-week average. The three largest buyers were Mexico (12,000 mt), China (7,800 mt) and South Korea (5,500 mt).
FRIDAY'S HOG CALL: Lower. Given that it's Friday, packers won't likely need support the cash market much.
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