GENERAL COMMENTS:
Following Tuesday's steep sell-off, the livestock complex saw a little better interest through Wednesday's market although traders remain on-high alert with the political and economic state of our country. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.53 with a weighted average price of $71.77 on 6,463 head. December corn is down 1 1/2 cents per bushel and December soybean meal is up $0.30. The Dow Jones Industrial Average is up 127.17 points.
LIVE CATTLE:
The live cattle contracts were able to close higher as traders felt less pressure in Wednesday's market. October live cattle closed $0.07 higher at $182.20, December live cattle closed $0.37 higher at $186.02 and February live cattle closed $0.07 higher at $190.37. The cash cattle market's unwillingness to trade cattle steady with Tuesday's thin movement also lent traders some confidence as well. Bids were offered throughout the afternoon at $182 to $183 live and $288 to $290 dressed in Nebraska and $182 live in Texas. It's likely that the week's trade will now be delayed until late Thursday afternoon or Friday as feedlots are aiming to trade cattle for more than what Tuesday's market accomplished. On Tuesday afternoon some live cattle sold in the South for $182 and a light round of dressed trade was noted in Nebraska at $183, both of which are $1.00 lower than last week's weighted average. Feedlots are going to be challenged in trying to get more money out of packers this week, but depending on how desperately packers need supplies, anything could happen. Wednesday's slaughter is estimated at 125,000 head, 1,000 head less than a week ago and 3,000 head less than a year ago. Tuesday's slaughter was revised to 125,000 head.
Boxed beef prices closed lower: choice down $3.31 ($296.76) and select down $0.72 ($274.87) with a movement of 176 loads (102.88 loads of choice, 40.33 loads of select, 14.32 loads of trim and 18.57 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Given that packers already have some cattle bought for $1.00 lower than last week's weighted average in both regions, it's likely that packers will refuse to budge from those price points.
FEEDER CATTLE:
It wasn't a rosy day for the feeder cattle complex as the contracts were able to close mixed, but sales were slightly softer in the countryside after the week's whirlwind of emotion surrounding political and economic fears. October feeders closed $0.82 lower at $247.44, November feeders closed $0.07 higher at $250.42 and January feeders closed $0.22 lower at $254.05. The spot November contract did close below the contract's 100-day moving average again Wednesday, which remains a key threshold to monitor given that before Tuesday's weakness the market hadn't come close to trading at that level since January of 2023. At Bassett Livestock Auction in Bassett, Nebraska, compared to last week steers weighing 850 to 950 pounds sold $5.00 to $14.00 lower and there were no comparable offerings on heifers. Feeder cattle supply over 600 pounds was 99%. The CME Feeder Cattle Index for Oct. 3: up $0.11, $251.90.
LEAN HOGS:
The lean hog complex was able to support most of its nearby contracts through closing while the deferred contracts closed mildly lower. October lean hogs closed $0.05 lower at $79.92, December lean hogs closed $0.10 higher at $69.17 and February lean hogs closed $0.37 higher at $73.10. By the day's end traders assessed the technical side of the market and felt less pressured given that some of the political tensions had eased and given the additional support of a higher close in cash prices and a slight increase in the carcass price's close. The carcass didn't close much higher (up just $0.03) but with the rib closing $6.15 higher, the belly closing $4.15 higher and the butt closing $1.08 higher, the lean hog complex will take any win following the past week's strenuous downturn. Pork cutouts totaled 313.86 loads with 269.14 loads of pork cuts and 44.72 loads of trim. Pork cutout values: up $0.03, $94.64. Wednesday's slaughter is estimated at 481,000 head, 5,000 head less than a week ago and 7,000 head less than a year ago. The CME Lean Hog Index for Oct. 2: down $0.29, $84.55.
THURSDAY'S HOG CALL: Steady to somewhat lower. Given it will already be Thursday and that, throughout the week, pork cutouts have danced on both sides of steady, it's likely that Thursday's cash market will be steady at best and mostly likely somewhat lower.
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