Friday, September 15, 2023

Friday Midday Livestock Market Summary - Cash Cattle Begin to Trade Steady to $3.00 Higher

GENERAL COMMENTS:

Finally some cash cattle trade has been noted and Southern prices are trading $3.00 higher and Northern prices are trading steady to $2.00 higher. The cattle contracts are loving the strong bullish nature of the cattle market's fundamentals and traders aren't being bashful about advancing the contracts aggressively ahead of Friday's close. December corn is down 4 cents per bushel and December soybean meal is down $4.10. The Dow Jones Industrial Average is down 190.41 points.

LIVE CATTLE:

If you thought Thursday's move was overdone by traders, hold onto your hat because Friday's market is charged and headed for even higher prices. October live cattle are up $1.77 at $187.25, December live cattle are up $1.40 at $191.75 and February live cattle are up $1.15 at $196.15. Traders are continuing to fan their excitement of the market's long-term bullish outlook and are growing increasingly bullish as they see feedlots work the cash cattle market to the fullest of their ability. There's been a light trade reported Friday morning where Southern live cattle are trading for $183 which is $3.00 higher than last week's weighted average, and Northern dressed cattle are trading at $292 which is steady to $2.00 higher than last week's weighted average. Even with Friday morning's trade, there's likely going to be more action seen Friday afternoon as the week's total volume is still thin. Grab your popcorn now because when the climax of this week's showdown begins to unravel, it's likely going to be fast and furious.

Boxed beef prices are lower: choice down $0.01 ($306.36) and select down $2.15 ($284.71) with a movement of 107 loads (72.51 loads of choice, 19.09 loads of select, 6.02 loads of trim and 9.53 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is yet again climbing to new highs as the market thrives on the bullish nature seeping into its market from the live cattle complex. Between the supportive tone of the live cattle/cash cattle market, mixed with the tremendous buying interest of cattle buyers in the countryside along with weaker corn prices, this week's market has been a near perfect environment for feeders. September feeders are up $1.55 at $256.72, October feeders are up $1.92 at $263.90 and November feeders are up $2.70 at $267.50.

LEAN HOGS:

The past two days of lower trade has alleviated some technical pressure for the lean hog contracts and is allowing for the market to trade mildly higher into Friday's noon hour. October lean hogs are up $0.12 at $83.47, December lean hogs are up $0.35 at $75.45 and February lean hogs are up $0.07 at $79.10. It's likely that the market keeps with this slightly stronger tone through Friday's end as traders don't expected to see much additional support from the cash complex and it's tough saying what pork cutout values could do by Friday afternoon.

The projected lean hog index for Sept. 14 is down $0.01 at $86.93, and the actual index for Sept. 13 is up $0.46 at $86.94. Hog prices are lower on the Daily Direct Morning Hog Report down $0.81 with a weighted average price of $77.51, ranging from $73.50 to $80.00 on 3,281 head and a five-day rolling average of $78.46. Pork cutouts total 137.73 loads with 126.95 loads of pork cuts and 10.78 loads of trim. Pork cutout values: down $1.43, $97.66.




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