GENERAL COMMENTS:
With a sluggish export report kicking the day off, the livestock complex hasn't found as much excitement in Friday's market as it did over the past two days. No new cash cattle trade has developed and it's looking like the bulk of this week's business is essentially done. December corn is down 2 1/2 cents per bushel and December soybean meal is down $3.50. The Dow Jones Industrial Average is up 47.14 points.
LIVE CATTLE:
The live cattle contracts are trading mostly lower midday Friday as the market longs for continued support but with a sleepy, dreary tone dominating the livestock complex, their desires aren't coming to fruition. October live cattle are up $0.50 at $185.90, December live cattle are down $0.27 at $187.52 and February live cattle are down $0.35 at $191.67. The spot December contract continues to trade above its 40-day moving average, which signals that traders aren't deeming their upward trek made earlier this week as a mistake, but rather Friday's sluggishness is just a pause in their efforts. The cash cattle market hasn't seen any more trade develop and it's looking like the bulk of this week's business is essentially done with. Throughout the week, Northern dressed deals have been mostly marked at $292, which is $3.00 higher than last week's weighted average. Southern live cattle have traded for mostly $183 to $184, which is $1.00 to $2.00 higher than last week's weighted average.
Beef net sales of 9,000 mt for 2023 were down 32% from the previous week and 29% from the prior four-week average. The three primary buyers were South Korea (2,400 mt), Japan (1,900 mt) and Mexico (1,800 mt).
Boxed beef prices are higher: choice up $0.02 ($301.21) and select up $0.43 ($275.45) with a movement of 49 loads (18.86 loads of choice, 6.84 loads of select, 10.55 loads of trim and 13.09 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is back to trading lower as the live cattle market is offering little support in Friday's market and as traders have accomplished much over the week's earlier trade. Prices may be trending slightly lower, but traders are keeping the spot November contracts above its 100-day moving average at this point, which remains encouraging. Next week, the market will again be closely watching the cash cattle complex to see how it performs and what packer's demand situation looks like, all while keeping an eye on feeder cattle sales in the countryside as the fall run is in full swing. October feeders are down $1.05 at $250.97, November feeders are down $0.87 at $252.70 and January feeders are down $0.65 at $253.82.
LEAN HOGS:
With a modest export sales report and lower cash prices and pork cutout values, the lean hog complex isn't overly enthusiastic as the market nears Friday's noon hour. December lean hogs are down $0.22 at $69.87, February lean hogs are down $0.57 at $74.45 and April lean hogs are down $0.67 at $80.85. The market continues to respect the support plane established recently and hasn't come up against breaking through that plane in the spot December contract. It's likely that the market will keep with this sluggish tone through the day's end and look for reassuring support next week, especially in the form of strong pork demand and better cash interest.
The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.27 with a weighted average price of $72.19, ranging from $68.00 to $75.00 on 917 head and a five-day rolling average of $73.76. Pork cutouts total 212.64 loads with 197.72 loads of pork cuts and 14.92 loads of trim. Pork cutout values: down $1.29, $90.85.
Pork net sales of 21,100 mt for 2023 were down 51% from the previous week and 32% from the prior four-week average. The three largest buyers were Mexico (8,700 mt), Japan (3,500 mt) and Colombia (2,600 mt).
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