GENERAL COMMENTS:
So far, it's been a rough day for the livestock contracts as prices are lower and weaker tones dominate the marketplace. No new cash cattle trade has been reported and it looks like the week's business is essentially done. December corn is down 5 3/4 cents per bushel and December soybean meal is down $8.90. The Dow Jones Industrial Average is down 67.72 points.
LIVE CATTLE:
Even though Thursday's market saw more technical support than earlier in the week, the live cattle complex is back to trading lower. The cash cattle market's steady/somewhat weaker tone hasn't lent much additional support as this week's trade has trickled in by bits and pieces and its overall tone has been soft. No new sales have been reported Friday morning and it's likely the week's business is essentially done. So far this week, Northern dressed deals have had a range of $288 to $293, mostly $290 to $291, $1 to $2 lower than last week's weighted averages. Southern live transactions have been marked at $182 to $183, mostly $183, fully steady with last week's weighted averages. October live cattle are down $1.75 at $184.75, December live cattle are down $1.95 at $188.50 and February live cattle are down $1.57 at $193.05.
Boxed beef prices are mixed: choice up $0.90 ($302.41) and select down $0.11 ($277.33) with a movement of 70 loads (42.44 loads of choice, 13.88 loads of select, 5.82 loads of trim and 7.81 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are also trading lower as traders again move the spot November contract to the bottom of its recently established trading range. The feeder cattle complex isn't lacking fundamental support, and the further the market moves through October the better prices will likely become. Yes, sale barns have seen slightly softer prices this past week, but it's only been by $1.00 or $2.00 here and there, as the only groups really getting discounted are the unweaned/unvaccinated calves. But without much support from the live cattle/cash cattle market and with concerns that a government shutdown could begin next week, feeders are remaining cautious. October feeders are down $2.60 at $252.12, November feeders are down $2.60 at $255.12 and January feeders are down $1.85 at $258.20.
LEAN HOGS:
Traders are allowing the lean hog contracts to trade lower as the fears of a government shutdown mixed with Thursday's Quarterly Hogs and Pigs report isn't setting well with the complex. The nearby contracts are seeing the biggest hit as the contracts are trading mostly $3.00 lower, but $1.00 to $2.00 losses are noted even in the deferred contracts. The spot December contract is trading at the bottom of its trading range, but trades haven't broken through support at this point. It's likely the market will close with this doggish mindset as support isn't seeming to develop fundamentally or technically. October lean hogs are down $3.70 at $80.25, December lean hogs are down $3.75 at $71.77 and February lean hogs are down $3.27 at $75.32.
The projected CME Lean Hog Index for 9/28/2023 is down $0.56 at $85.58, and the actual index for 9/27/2023 is steady at $86.14. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.73 with a weighted average price of $74.35, ranging from $72.00 to $75.50 on 1,155 head and a five-day rolling average of $76.53. Pork cutouts total 142.60 loads with 128.94 loads of pork cuts and 13.66 loads of trim. Pork cutout values: down $0.28, $96.64.
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