GENERAL COMMENTS:
The livestock complex is off to a mixed start as traders wrap their minds around the market and what could be ahead. New showlists appear mixed, somewhat higher in Texas, higher in Nebraska/Colorado, but lower in Kansas. December corn is up 6 1/2 cents per bushel and December soybean meal is down $0.10. The Dow Jones Industrial Average is down 117.64 points.
LIVE CATTLE:
The live cattle complex started Monday mostly lower, but as time has passed, traders have shown more interest and support and are currently helping the live cattle complex trading fully higher into the noon hour. October live cattle are up $0.45 at $184.20, December live cattle are up $0.40 at $184.87, and February live cattle are up $0.40 at $185.92. Following last week's tremendous performance, traders and cattlemen alike are scratching their heads this week wondering how much more upside the market holds for the immediate future. If boxed beef prices were consistently trading higher, then one could safely bet the rest of the market's mechanics should trade higher too. But if boxed beef prices are weaker this week, do you think the cash cattle market will be able to trade higher for the third week in a row? Time will tell. New showlists appear to be mixed, somewhat higher in Texas, higher in Nebraska/Colorado, but lower in Kansas.
Last week Southern live cattle traded for mostly $185, which is $2.00 higher than the previous week's weighted average, and Northern dressed cattle traded mostly $294, which is $3.00 higher than the previous week's weighted average.
Boxed beef prices are higher: choice up $0.78 ($297.47) and select up $1.18 ($283.26) with a movement of 63 loads (39.99 loads of choice, 7.68 loads of select, 4.30 loads of trim and 10.92 loads of ground beef).
FEEDER CATTLE:
Even though the live cattle complex is trading higher, the feeder cattle market is trading in a reserved manner and traders need to see fundamental support before advancing prices any higher. October feeders are down $0.65 at $246.42, November feeders are down $0.67 at $245.02, and January feeders are down $0.87 at $238.72. The feeder cattle market was well supported last week with the live cattle and fed cash cattle markets trading higher, and the market again hopes this week to find that same level of support.
LEAN HOGS:
All in all, the lean hog complex is back to trading mostly higher as traders approach the week with a new attitude. Helping support their desire to advance the futures complex is the midday pork cutout value which is thankfully higher at the week's start. Any time the market can see stable/supportive interest from consumers is a win for the hog sector. October lean hogs are up $0.17 at $82.22, December lean hogs are down $0.17 at $73.20, and February lean hogs are down $0.05 at $77.45. And while some of the nearby contracts may be trading mildly lower, the deferred contracts aren't as pressured as traders believe market-ready supplies of hogs will be thinner at that point.
The projected CME Lean Hog Index for 9/27/2024 is down $0.02 at $84.01, and the actual index for 9/26/2024 is down $0.04 at $84.03. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.18 with a weighted average price of $76.42, ranging from $74.00 to $77.00 on 1,170 head and a five-day rolling average of $76.35. Pork cutouts total 130.02 loads with 114.50 loads of pork cuts and 15.52 loads of trim. Pork cutout values: up $1.04.
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