GENERAL COMMENTS:
It was a positive day for the livestock complex as the contracts were able to close mostly higher as trades found the fundamental support necessary to drive the contracts higher. No substantial cash cattle trade developed even though bids were offered in the North. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.99 with a weighted average price of $78.80 on 12,225 head. December corn is up 6 cents per bushel and December soybean meal is up $5.90. The Dow Jones Industrial Average is down 76.85 points.
LIVE CATTLE:
The live cattle complex was able to close higher Wednesday afternoon as traders began to put their faith in the cash cattle market and believe that it will at least trade steady this week if not a little higher. The complex consistently saw $1.00 gains across most of its contracts, which again puts the spot December contract near resistance. Come Thursday traders will be pressured to either maintain this price point or walk back meekly. October live cattle closed $1.10 higher at $186.77, December live cattle closed $1.05 higher at $191.52, and February live cattle closed $0.92 higher at $195.85. The cash cattle market saw some bids offered in Iowa at $292 to $293 dressed, but trade didn't develop. Asking prices in the South are noted at $185 to $186 but are still elusive in the North. Trade could begin to cut loose on Thursday, but it could also be delayed until Friday like it was last week.
Wednesday's slaughter is estimated at 126,000 head -- steady with a week ago and 2,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.86 ($301.26) and select down $3.10 ($278.68) with a movement of 196 loads (81.43 loads of choice, 57.18 loads of select, 34.56 loads of trim and 22.52 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to $2.00 higher. Given that front end supplies are so thin, prices will at least trade steady this week if not a little higher.
FEEDER CATTLE:
Even though corn prices closed $0.05 to $0.06 higher, the feeder cattle complex saw the live cattle market's subtle strength as enough of a positive gesture to merit a higher close in its own market. September feeders closed $0.67 higher at $254.17, October feeders closed $1.22 higher at $260.57 and November feeders closed $0.55 higher at $265.57. The spot October contract is still far enough away from resistance pressure that traders should be able to keep their positive momentum carrying into Thursday's market so long as the live cattle/cash cattle markets continue to lend support. At Winter Livestock Auction in Dodge City, Kansas compared to last week feeder steers and heifers weighing 750 to 900 pounds sold steady. Steer sand heifers weighing 450 to 750 pounds sold $8.00 to $10.00 higher, but there were thin fleshed calves that sold as much as $20.00 to $23.00 higher. Slaughter cows and bulls sold $4.00 to $5.00 lower. Feeder cattle supply over 600 pounds was 72%. The CME feeder cattle index 9/19/2023: up $0.55, $253.42.
LEAN HOGS:
The lean hog complex kept its upward momentum through Wednesday's end even as that meant breaking through resistance. With the additional support of the cash hog market seeing slightly higher cash prices and a better movement this past week, traders have gotten the support they needed to justify running the contracts higher. And even though pork cutout values closed lower this afternoon, all in all, pork demand has been strong this past week. The biggest losses seen this afternoon in the pork cutout report were in the rib which fell $6.14 and the picnic which fell $3.73. October lean hogs closed $0.92 higher at $85.77, December lean hogs closed $1.97 higher at $78.22, and February lean hogs closed $1.70 higher at $80.90. Pork cutouts totaled 328.15 loads with 282.26 loads of pork cuts and 45.89 loads of trim. Pork cutout values: down $1.91, $99.22. Wednesday's slaughter is estimated at 485,000 head -- 9,000 head more than a week ago and 6,000 head less than a year ago. The CME lean hog index 9/18/2023: down $0.23, $86.58.
THURSDAY'S HOG CALL: Lower. It's unlikely hog packers to be active in the cash market throughout the week, so given the fact that they were pretty active early on, it's likely that they'll show Thursday and Friday's market less interest.
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