GENERAL COMMENTS:
With all three of the livestock markets able to end the day higher yet again, Tuesday's market was fruitful for the livestock complex. No bids or asking prices developed in the cash cattle market as trade will likely be delayed until Thursday or Friday. December corn is down 1 3/4 cents per bushel and December soybean meal is down $2.80. The Dow Jones Industrial Average is up 36.50 points.
LIVE CATTLE:
The live cattle complex started the day out hesitant, but by noon traders were again back to fully supporting the live cattle complex as they saw the midmorning's higher boxed beef prices which gave them just enough confidence to continue to support the market through the day's end. October live cattle closed $0.05 lower at $183.20, December live cattle closed $0.57 higher at $184.40 and February live cattle closed $0.57 higher at $185.42. Every day that the market closes above its 100-day moving average is a positive signal given to the greater marketplace that the tone throughout the cattle complex is indeed bullish. Still no cash cattle sales have been reported, and it's likely that again this week the market will wait to trade until Thursday or Friday as feedlot managers and packers will go toe to toe.
Tuesday's slaughter is estimated at 125,000 head – steady with a week ago and 3,000 head less than a year ago.
Boxed beef prices closed mixed: choice up $0.08 ($301.89) and select down $0.92 ($286.87) with a movement of 140 loads (92.90 loads of choice, 26.31 loads of select, 4.69 loads of trim and 15.82 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. Given that packers are operating with thin margins, it's likely that they'll cut processing back to avoid the cash cattle market from trading higher.
FEEDER CATTLE:
It was another rallying day for the feeder cattle complex as the market yet again crept higher throughout the day's trade. Thanks to the continued support of the live cattle market's higher trend, and to supportive buying action in the countryside, the feeder cattle complex had no issue trekking higher through Tuesday's end. October feeders are up $1.32 at $245.80, November feeders are up $0.65 at $243.40 and January feeders are up $0.35 at $238.12. At Sioux Falls Regional Cattle Auction in Worthing, South Dakota, compared to last week, steers weighing 850 to 900 pounds sold $3.00 to $4.00 lower, steers weighing 950 pounds sold mostly $1.00 to $3.00 higher. Heifers weighing 650 pounds traded $8.00 higher, heifers weighing 750 pounds sold $2.00 lower and heifers weighing between 800 and 900 pounds sold steady to $3.00 higher. The CME feeder cattle index 9/23/2024: up $0.52, $244.02.
LEAN HOGS:
The lean hog complex was also able to round out the day higher as ample trader support kept the complex in its upward trend. October lean hogs closed $0.17 lower at $82.12, December lean hogs closed $0.10 higher at $74.97 and February lean hogs closed $0.30 higher at $78.70. Packers were more aggressive in the cash market, which also added some support, and unfortunately because of packer submission issues, we can't see closing pork cutout values. Heading into Wednesday's trade some trader hesitancy could be noted as on Thursday afternoon the Quarterly Hogs and Pigs report will be released. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.53 with a weighted average price of $76.54 on 12,181 head. Pork cutouts are unavailable due to packer submission issues. Tuesday's slaughter is estimated at 487,000 head -- 14,000 head more than a week ago and 3,000 head less than a year ago. The CME lean hog index 9/20/2024: down $0.7, $84.29.
WEDNESDAY'S HOG CALL: Steady. Packers were aggressive in Tuesday's cash market as over 12,000 head sold -- but even so it's likely that they'll need to buy somewhat aggressively on Wednesday to avoid being short bought for the week.
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