GENERAL COMMENTS:
It was a mixed day for the livestock complex as the lean hog contracts found mild support ahead of Wednesday's close, but the cattle contracts couldn't attract any attention from traders. A little cash cattle trade developed, but more will need to develop later this week. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.37 with a weighted average price of $76.62 on 5,581 head. December corn is up 3 1/2 cents per bushel and December soybean meal is down $3.60. The Dow Jones Industrial Average is down 68.08 points.
LIVE CATTLE:
The live cattle complex merely kicked rocks throughout Wednesday's trade as the contracts all closed lower and the cash cattle market only saw mild interest from packers throughout the day. The market's reality of tight supplies remains true, but with fears of a government shutdown looming mixed with slightly lighter processing speeds and financially drained consumers -- the live cattle market is gritting its teeth praying that the government doesn't shut down and that beef demand picks up. October live cattle closed $0.10 higher at $184.90, December live cattle closed $0.30 lower at $188.17 and February live cattle closed $0.65 lower at $192.40. There was a handful of cattle traded in the North at $290 to $292 which is steady to $2.00 lower than last week's weighted average. Late Tuesday afternoon there was some live trade reported in the South at $183 which is fully steady with last week's weighted average.
Wednesday's slaughter is estimated at 126,000 head - steady with a week ago but 2,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $1.41 ($300.95) and select down $0.59 ($278.51) with a movement of 149 loads (85.81 loads of choice, 35.73 loads of select, 6.17 loads of trim and 21.26 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady with the week's trend. Packers weren't overly aggressive in Wednesday's cash market, and they'll likely need to procure more cattle before the week's end.
FEEDER CATTLE:
With corn prices rounding out the day $0.03 to $0.04 higher and the live cattle/cash cattle markets lending virtually no support, the feeder cattle complex had little but to close lower. October feeders closed $1.62 lower at $252.25, November feeders closed $2.07 lower at $254.80 and January feeders closed $2.70 lower at $257.40. With the notion of a government shutdown looming the market continues to remain hesitant and on edge despite the market's fundamentals still remaining in good standing.
At Winter Livestock Auction in Riverton, Wyoming compared to last week slaughter cows sold steady while slaughter bulls traded $1.00 to $4.00 lower. Yearling steers traded unevenly steady with lower undertones noted, but yearling heifers sold steady with higher instances. Feeder cattle that were long weaned with pre-conditioning shots sold stronger. Feeder cattle supply over 600 pounds was 33%. The CME feeder cattle index 9/26/2023: down $0.63, $253.27.
LEAN HOGS:
The lean hog complex closed mildly higher as the market anxiously awaits to see what Thursday's Hogs and Pigs Report presents. Even if the report is supportive, we have to question how much upside potential the market will have given the political and economic pressures looming above the livestock complex this week. Either way, traders will be keenly waiting for the report and will likely react to its findings Friday morning. The lean hog contracts did close mildly higher Thursday afternoon, but it wasn't because of better fundamental support as both cash prices and pork cutout values closed lower. October lean hogs closed $0.50 higher at $82.12, December lean hogs closed $0.42 higher at $72.77 and February lean hogs closed $0.52 higher at $76.27. Pork cutouts totaled 257.62 loads with 213.60 loads of pork cuts and 44.02 loads of trim. Pork cutout values: down $0.52, $97.76. Wednesday's slaughter is estimated at 486,000 head -- 1,000 head more than a week ago and steady with a year ago. The CME lean hog index 9/25/2023: down $0.39, $86.31.
THURSDAY'S HOG CALL: Steady. Packers are keeping their cards close to their chest this week which likely means that they'll show Thursday's market little interest and at best prices will trade steady.
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