GENERAL COMMENTS:
Thursday ended up being a "swing and a miss" for the livestock complex as commodity pressures sent the livestock contracts trending lower. Some light cash cattle trade has now been reported in both regions where Southern live cattle are trading at $181 and Northern cattle are trading at $288 -- both of which are $2.00 lower than last week's weighted average. December corn is down 2 cents per bushel and December soybean meal is down $2.80. The Dow Jones Industrial Average is down 219.22 points.
LIVE CATTLE:
Today's $1.00 to $2.00 lower close was mentally defeating for the live cattle complex as the market continues to struggle to make long-term progress in the marketplace. The market may trade higher for a day or two, but then low and behold, the complex cools off and prices dip back lower. On the bright side, the market didn't break beneath current support planes, which would have been really bearish. But instead, the market merely gave up the progress made earlier this week with its softer close. October live cattle closed $1.97 lower at $177.25, December live cattle closed $2.17 lower at $176.72 and February live cattle closed $2.17 lower at $177.32. The cash cattle market wasn't overly helpful throughout the day either as Kansas and Texas noted some trade at $181 which is $1.00 higher than Wednesday's business but still is $2.00 lower than last week's weighted average. A light round of trade was also noted in the North at $282 which is also $2.00 lower than last week's weighted average.
Thursday's slaughter is estimated at 124,000 head -- 1,000 head more than a week ago and 4,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.09 ($311.51) and select down $2.61 ($296.78) with a movement of 135 loads (85.23 loads of choice, 33.95 loads of select, 3.60 loads of trim and 12.29 loads of ground beef).
FRIDAY'S CATTLE CALL: Steady. Given that some light trade has now developed in both regions, prices will likely remain steady with the week's trend.
FEEDER CATTLE:
The feeder cattle complex continued to suffer throughout the day as neither the live cattle nor the cash cattle market lent much for support. As I mentioned in the midday comments today, what continues to be especially frustrating however when watching the feeder cattle complex trade is just how overdone the downward swings tend to be when traders elect to turn the feeder cattle market south. It's one thing to react to a bearish commodity day, but trading $2.00 to $3.00 lower at any hint of bearish news is a little extreme. Regardless of whatever you and I deem "logical" traders are going to do whatever they need to do. September feeders closed $2.50 lower at $237.12, October feeders closed $2.87 lower at $234.57 and November feeders closed $3.50 lower at $231.67. The CME feeder cattle index 9/4/2024: up $1.74, $241.27.
LEAN HOGS:
Even the lean hog complex was pressured throughout the day as its market again closed lower. But with pork cutout values trending slightly lower and the cash market not adding any support -- traders opted to turn the market lower as commodity pressure loomed all throughout the day. October lean hogs closed $0.87 lower at $80.70, December lean hogs closed $0.65 lower at $72.05 and February lean hogs closed $0.52 lower at $75.25. Friday's export report will be important for the lean hog complex as demand continues to be a factor that both traders and pork producers are closely monitoring. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.83 with a weighted average price of $77.84 on 4,014 head. Pork cutouts totaled 371.26 loads with 335.64 loads of pork cuts and 35.62 loads of trim. Pork cutout values: down $0.42, $94.87. Thursday's slaughter is estimated at 485,000 head, steady with a week ago but 21,000 head more than a year ago. The CME lean hog index 9/3/2024: up $0.12, $86.27.
FRIDAY'S HOG CALL: Lower. It would appear as though packers have fulfilled the bulk of their cash hog needs earlier in the week.
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