GENERAL COMMENTS:
Even though traders believed that the Federal Reserve would lower interest rates this afternoon, it was peace of mind to see Chairman Powell publicly announce a half-point cut this afternoon. Still no cash cattle trade has developed, and it's likely that trade could be delayed until Friday. December corn is up 1/4 cents per bushel and December soybean meal is down $0.10. The Dow Jones Industrial Average is up 180.19 points.
LIVE CATTLE:
It was another fruitful day for the live cattle complex as traders supported the market through the day's end despite the fact that there's been no cash cattle sales yet, and that boxed beef prices closed lower. It was encouraging to see traders keep the spot December contract above the market's 40-day moving average even though there's a Cattle on Feed report looming later this week, and we believe the cash cattle market will likely trade steady, you can't be certain until sales are actually reported. December live cattle closed steady at $179.85, February live cattle closed $0.07 higher at $181.07 and April live cattle closed $0.05 higher at $182.42. No bids developed throughout the day as both packers and feedlot managers know that this week's trade is going to be a waiting game. Asking prices in the South are noted at $184 to $185 but remain unestablished still in the North.
Wednesday's slaughter is estimated at 125,000 head -- 1,000 head more than a week ago and 2,000 head less than a year ago.
Boxed beef prices closed lower: choice down $2.53 ($301.38) and select down $2.47 ($289.75) with a movement of 176 loads (107.85 loads of choice, 42.87 loads of select, 7.58 loads of trim and 18.13 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Feedlot managers are eager to regain some leverage in the marketplace and with showlists current, they're batting for at least steady prices this week.
FEEDER CATTLE:
The feeder cattle complex wasn't as aggressive throughout Wednesday's trade as the live cattle complex was as most of its nearby contracts closed slightly lower but some of the deferred contracts were able to maintain a slightly higher end by the day's ending bell. More than anything it seems as though traders have hit the pause button on the feeder cattle market's upward trend as they dance uncomfortably around the market's 40-day moving average and are sweating about Friday's Cattle on Feed report. October feeders closed $0.80 lower at $239.95, November feeders closed $0.17 lower at $238.12 and January feeders closed $0.05 higher at $233.10. At Hub City Livestock Auction in Aberdeen, South Dakota compared to last week steers weighing 850 to 949 pounds sold steady, but steers weighing 950 to 999 pounds and those weighing 1,000 to 1,049 pounds traded $3.00 to $5.00 higher. All weight classes of heifers sold with a stronger undertone. Feeder cattle supply over 600 pounds was 96%. The CME feeder cattle index 9/17/2024: down $0.05, $243.39.
LEAN HOGS:
The lean hog complex powered through Wednesday's trade rallying on strong trader support. The spot December contract inched slightly higher, not willing to take on the resistance at $74.00, but not seeming to necessarily want to trade lower either. It was disappointing however to see how the market's fundamentals shook out throughout the day given that the cash hog market was hardly tested, and that the afternoon carcass price sank lower. But between the belly's $4.41 drop and the picnic's $2.70 drop, the carcass price stood little chance at closing higher. October lean hogs closed $0.27 higher at $82.05, December lean hogs closed $0.17 higher at $73.87 and February lean hogs closed $0.20 higher at $77.00. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.45 with a weighted average price of $74.88 on 1,318 head. Pork cutouts totaled 372.40 loads with 338.15 loads of pork cuts and 34.25 loads of trim. Pork cutout values: down $0.59, $94.41. Wednesday's slaughter is estimated at 479,000 head -- 4,000 head less than a week ago and 8,000 head less than a year ago. The CME lean hog index 9/16/2024: down $0.16, $84.22.
THURSDAY'S HOG CALL: Lower. With the reduction in slaughter this week and in noting how thinly Wednesday's market was traded, there's a chance that packers could be essentially done buying cash hog already this week.
No comments:
Post a Comment