GENERAL COMMENTS:
It was a strong day for the livestock complex as all three of the markets were able to round out the day stronger. The cash cattle market still hasn't seen any cattle trade but asking prices in the South are noted at $184 to $185. December corn is up 1 3/4 cents per bushel and December soybean meal is down $2.30. The Dow Jones Industrial Average is down 47.57 points.
LIVE CATTLE:
The live cattle complex was able to capitalize on traders' interest and support and thankfully rally through Tuesday's end. The spot December contract: however, still wasn't able to break through the market's resistance at its 40-day moving average of $179.85 -- it missed it by a mere penny. The trick part about this week's market is that traders seem both willing and eager to advance the contracts but aren't able to fully do so without a little more fundamental support. But even if boxed beef prices turn higher later this week or even if the cash cattle market maintains steady trade, there's a strong chance that traders pull-back from the market ahead of see what Friday's Cattle on Feed report yields. Asking prices in the South are noted at $184 to $185 but are still not established in the North. Trade will likely be delayed until Wednesday or later.
Tuesday's slaughter is estimated at 125,000 head -- 1,000 head more than a week ago and steady with a year ago.
Boxed beef prices closed mixed: choice down $0.66 ($303.91) and select up $0.08 ($292.22) with a movement of 156 loads (105.86 loads of choice, 27.23 loads of select, 12.78 loads of trim and 10.58 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Given that packers didn't get many cattle bought last week for the deferred delivery option, it's likely that they'll need to be aggressive again in this week's market which could help prices hold steady.
FEEDER CATTLE:
It was a strong day for the feeder cattle complex as the market was well supported by traders and from the encouragement that spilt over from the live cattle market's higher trend too. October feeders closed $1.75 higher at $240.75, November feeders closed $2.72 higher at $238.30 and January feeders closed $2.37 higher at $233.05. Just like the live cattle complex, the spot October feeder cattle contract came up shy of closing above the market's immediate resistance at the 40-day moving average at $241.21. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week feeder steers under 650 pounds sold steady to $8.00 lower with heavier weights traded $2.00 to $6.00 higher. Feeder heifers sold steady to $5.00 higher. Supply was heavy but demand remained strong. Feeder cattle supply over 600 pounds was 68%. The CME feeder cattle index 9/16/2024: up $0.76, $243.44.
LEAN HOGS:
It was a rallying day for the lean hog complex as the market was able to close substantially higher. Traders saw the support of the cash market and the higher close of pork cutout values and found plenty of room on the board to trade. October lean hogs closed $1.85 higher at $81.77, December lean hogs closed $1.52 higher at $73.70 and February lean hogs closed $1.12 higher at $76.80. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.37 with a weighted average price of $77.33 on 9,204 head. Pork cutouts totaled 298.02 loads with 262.96 loads of pork cuts and 35.07 loads of trim. Pork cutout values: up $0.78, $95.00. Tuesday's slaughter is estimated at 474,000 head -- 10,000 head less than a week ago and 11,000 head less than a year ago. The CME lean hog index 9/13/2024: down $0.49, $84.38.
WEDNESDAY'S HOG CALL: Steady. Packers were more aggressive through Tuesday's market, but it's still likely that they'll need to buy some more on Wednesday.
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