GENERAL COMMENTS:
Wednesday morning inflation data for August was released which shared that the Consumer Price Index climbed 2.5% compared to a year ago, which has negatively affected both the equity and cattle markets as there are concerns about how much the Federal Reserve will cut interest rates this month. Still no cash cattle trade has developed, but a sole bid is offered in Kansas at $178. December corn is steady and December soybean meal is up $2.40. The Dow Jones Industrial Average is down 426.83 points.
LIVE CATTLE:
It's another day of doggish trade for the live cattle complex as the market can't seem to summon support from any angle. With the equity markets on edge because of concerns about how the Federal Reserve will react to today's Consumer Price Index data, traders are again uneasy in the marketplace which is affecting the live cattle market too. Still no cash cattle trade has developed and it's looking like the week's trade could be delayed until Thursday or Friday. Feedlots aren't in a rush to market any cattle as they'd like to see prices hold steady, and thankfully their showlists are smaller this week. There is a single bid currently offered in Kansas at $178, but otherwise the market is silent. October live cattle are down $0.65 at $175.67, December live cattle are down $0.52 at $175.90 and February live cattle are down $0.52 at $177.00.
Boxed beef prices are lower: choice down $0.22 ($308.01) and select down $2.54 ($294.47) with a movement of 99 loads (61.89 loads of choice, 21.49 loads of select, zero loads of trim and 15.14 loads of ground beef).
FEEDER CATTLE:
Even though the feeder cattle complex was able to take on Tuesday's market without the support of the live cattle contracts, today's added pressures with the equity markets trading lower are too much for feeders to handle. October feeders are down $0.27 at $235.12, November feeders are down $0.40 at $231.87 and January feeders are down $0.77 at $227.45. It's likely the complex will continue to chop sideways/trade lower throughout the day as traders aren't likely to find any unforeseen support in Wednesday's remaining hours.
LEAN HOGS:
The cattle complex may be reacting poorly to the CPI news shared this morning, but the lean hog market is unfazed as it continues to trade higher. October lean hogs are up $0.75 at $79.30, December lean hogs are up $0.97 at $72.12, and February lean hogs are up $0.57 at $75.60. But Wednesday's support is currently being technically driven as pork cutout values and cash prices aren't lending support. Traders will be anxious come Thursday morning to get the week's export data as thus far this week domestic consumer support has been lacking.
Hog prices are unavailable because of confidentiality on the Daily Direct Morning Hog Report, however we can see only 1,080 head have traded and the market's five-day rolling average now sits at $77.57. Pork cutouts total 226.57 loads with 176.11 loads of pork cuts and 50.46 loads of trim. Pork cutout values: down $1.52, $93.28.
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