GENERAL COMMENTS:
Traders are keeping their distance from the cattle complex as the day nears Friday's noon hour. No more cash cattle trade has been reported, but business could pick up Friday afternoon. December corn is up 4 1/2 cents per bushel and December soybean meal is down $3.20. The Dow Jones Industrial Average is up 10.91 points.
LIVE CATTLE:
The live cattle complex is trading lower into Friday's noon hour as traders seem checked out of the market. It will be interesting to see what happens Friday afternoon in regard to whether or not any more cash cattle trade will develop. On one hand, it's fair to assume that packers need more cattle and will need to get aggressive ahead of Friday's end, but on the other hand, with it being a long weekend and Monday being a holiday, packers could elect to keep this week's business minimal and hope that that forces feedlots to be more willing to sell next week. No new cash cattle trade has been reported Friday, but more business could develop later Friday afternoon. Asking prices for cattle left to sell remain firm at $181 to $182 in the South and $292 to $294 in the North. October live cattle are down $0.75 at $180.07, December live cattle are down $0.82 at $183.97 and February live cattle are down $0.67 at 188.17.
On Thursday, Northern dressed cattle sold at mostly $290, which is $3.00 lower than last week's weighted average and Southern live cattle sold at mostly $179, which is mostly steady with the previous week's weighted average.
Boxed beef prices are higher: choice up $1.61 ($315.40) and select up $1.44 ($290.69) with a movement of 64 loads (44.75 loads of choice, 11.31 loads of select, zero loads of trim and 8.10 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are again trading lower as the market wishes to entice traders to support the market ahead of the long weekend, but traders aren't seeming to agree. September feeders are down $1.60 at $251.67, October feeders are down $1.22 at $254.80 and November feeders are down $0.90 at $256.75. The lack of interest from traders combined with the fact that the live cattle contracts are too trading lower, and the fact that the corn complex is trending a slight $0.03 to $0.04 higher all bodes against the market trading higher at this point.
LEAN HOGS:
The lean hog complex has traded lower throughout most Friday morning, but now that the noon hour is quickly approaching, traders are seeming to have a change of heart as they're now mildly supporting the contracts. October lean hogs are up $0.70 at $83.25, December lean hogs are up $0.25 at $74.57 and February lean hogs are up $0.22 at $78.92. Seeing slightly better interest in pork cutouts could be helping as not only are prices higher in Friday's midday report, but they closed slightly higher yesterday afternoon too. It's especially encouraging to see carcass price close higher when the belly isn't the only cut swinging the carcass's average. On Thursday afternoon the rib was mostly to thank for the carcass price's higher close, and this morning the picnic, rib and ham are all printing significant price increases.
The projected lean hog index for Aug. 31 is down $1.49 ($87.77) and the actual index for Aug. 30 is down $1.41 ($89.26). Hog prices are lower on the Daily Direct Morning Hog Report, down $0.11 with a weighted average price of $80.06, ranging from $73.00 to $81.50 on 2,094 head and a five-day rolling average of $80.71. Pork cutouts total 143.89 loads with 134.91 loads of pork cuts and 8.98 loads of trim. Pork cutout values: up $3.29, $95.51.
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