GENERAL COMMENTS:
The livestock complex is seeing mixed support with currently only the feeder cattle market being able to trade higher while both the live cattle and lean hog markets drift lower. With another Cattle on Feed report set to be released on Friday, it's likely that hesitant/cautious tones dominate the cattle complex this week. December corn is down 9 1/4 cents per bushel and December soybean meal is down $10.00. The Dow Jones Industrial Average is down 291.10 points.
LIVE CATTLE:
Traders aren't willing to stick their necks out on the line and support the live cattle complex ahead of seeing what develops later this week in terms of the cash cattle market. Consequently, the live cattle contracts are continuing to trade lower even though demand remains strong. Traders are also leery about overly supporting the market given that slaughter speeds have been reduced and because on Friday another Cattle on Feed report will be released. No cash cattle trade has been noted at this point and it's likely that trade is delayed until late in the week. Bids and asking prices are still elusive. August live cattle are down $0.50 at $179.20, October live cattle are down $0.65 at $180.02 and December live cattle are down $0.75 at $184.22.
Boxed beef prices are higher: choice up $1.97 ($307.47) and select up $2.70 ($283.15) with a movement of 79 loads (36.97 loads of choice, 8.73 loads of select, 27.00 loads of trim and 5.82 loads of ground beef).
FEEDER CATTLE:
With the nearby corn contracts trading $0.08 to $0.09 lower, one would logically think that the feeder cattle contracts should be trading higher, and thankfully, even though the live cattle market isn't lending any additional support, feeders are indeed trading higher. But with the market trading at the highest threshold it's ever been on the continuous feeder cattle chart, it's hard to say just how much higher prices should be. Even though demand is utterly amazing, it wouldn't be surprising if the market saw some pushback later this week as traders grow hesitant ahead of Friday's Cattle on Feed Report. August feeders are up $0.10 at $246.32, September feeders are up $0.17 at $250.30 and October feeders are up $0.22 at $252.07.
LEAN HOGS:
Even after closing substantially lower Monday afternoon, the lean hog complex is still suffering and trading lower as traders remain skeptical. October lean hogs are down $0.32 at $78.82, December lean hogs are down $0.60 at $72.05, and February lean hogs are down $0.52 at $76.47. Monday afternoon the ham was the biggest reason why pork cutout values fell lower, but this morning the ham bounced $12.57 higher which is helping contribute to the higher overall carcass price. It will be interesting to see how afternoon pork cutout values close as prices have been volatile, which continues to wreak havoc on the futures complex and the market's overall uncertainty.
The projected lean hog index for 8/14/2023 is down $0.64 at $101.93, and the actual index for 8/11/2023 is down $0.49 at $102.57. Hog prices are lower on the Daily Direct Morning Hog Report, down $6.06 with a weighted average price of $94.86, ranging from $90.00 to $97.00 on 6,154 head and a five-day rolling average of $96.80. Pork cutouts total 174.53 loads with 157.17 loads of pork cuts and 17.36 loads of trim. Pork cutout values: up $2.51, $111.59.
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