GENERAL COMMENTS:
It was a prosperous day for the livestock complex as all three markets closed higher. One of the biggest supporting facets of Tuesday's complex was higher boxed beef and pork cutout prices. December corn is up 8 1/4 cents per bushel and December soybean meal is up $7.80. The Dow Jones Industrial Average is down 626.15 points.
LIVE CATTLE:
It was another strong day for the live cattle complex as the market was well supported by higher boxed beef prices and by traders' willingness to continue to advance the contracts as well. October live cattle closed $0.67 higher at $179.27, December live cattle closed $1.30 higher at $178.85 and February live cattle closed $1.12 higher at $179.57. The market continues to respect the resistance at $180 -- but if beef demand holds strong this week and the cash cattle market trades potentially steady, there's a chance that nearby resistance could be broke through. New showlists appear to be mixed, higher in Nebraska/Colorado, but lower in Kansas and Texas. Tuesday's slaughter is estimated at 125,000 head – 7,000 head more than a week ago and 3,000 head less than a year ago.
Last week Southern live cattle traded at mostly $182 to $183 which is steady to $1.00 lower than the previous week's weighted average. Northern dressed cattle traded at mostly $290 to $292 which is $2.00 to $4.00 lower than the previous week's weighted average.
Boxed beef prices closed higher: choice up $1.33 ($310.67) and select up $4.29 ($300.11) with a movement of 105 loads (77.90 loads of choice, 16.38 loads of select, zero loads of trim and 11.20 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. With packers inching up slaughter speeds ever so slightly, they could be in a position to need to buy more cash cattle.
FEEDER CATTLE:
With the help of a supportive, rallying live cattle complex, the feeder cattle market was also able to close higher. September feeders closed $0.90 higher at $241.37, October feeders closed $1.57 higher at $239.32 and November feeders closed $1.37 higher at $236.62. The spot October contract wasn't able to break through resistance levels, although the market did peak its head above the $240 threshold at one point. At Winter Livestock Auction in La Junta, Colorado compared to last week feeder steers sold $9.00 to $14.00 higher across all weight classes. Feeder heifers under 450 pounds sold $9.00 lower, feeder heifers between 450 to 550 pounds sold $16.00 lower, but heifers over 550 pounds traded $8.00 to $19.00 higher. Slaughter cows and bulls traded steady. Feeder cattle supply over 600 pounds was 64%.
LEAN HOGS:
The lean hog complex had another stunning day as the market kept with its rallying nature and once again closed higher. From trader's point of view, so long as demand remains plentiful, at this point there's really no reason to pump the brakes in the futures complex. And what's especially impressive about this afternoon's cutout close is that not one single cut closed lower -- which indicates good, widespread consumer demand. October lean hogs closed $0.30 higher at $82.52, December lean hogs closed $1.02 higher at $73.80 and February lean hogs closed $0.95 higher at $76.32. Hog prices are unavailable because of packer submission issues on the Daily Direct Afternoon Hog Report. Pork cutouts totaled 337.40 loads with 306.60 loads of pork cuts and 30.80 loads of trim. Pork cutout values: up $1.59, $98.82. Tuesday's slaughter is estimated at 484,000 head -- 5,000 head more than a week ago and 11,000 head more than a year ago. The CME lean hog index 9/4/2024: down $0.57, $86.47.
WEDNESDAY'S HOG CALL: Higher. Given that packers didn't buy aggressively last week, it's likely that they'll need to secure more inventory this week.
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