GENERAL COMMENTS:
Both the live cattle and lean hog contracts are trading mostly higher into Wednesday's noon hour, but the feeder cattle market isn't as sold as its market is currently trading mixed. Still no cash cattle trade has developed, but packer interest should improve later this afternoon. 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 is trading mostly higher into Wednesday's noon hour as the market anticipates interest rates to be lowered this afternoon and believes that there's a strong chance that the cash cattle market could trade at least steady again this week. October live cattle are down slightly, but besides that contract, the entire rest of the marketplace is trading higher. It is also worth noting that the spot December contract is currently trading above its 40-day moving average, which has been a resistance point at which the market has struggled to hurdle over. October live cattle are down $0.22 at $178.57, December live cattle are up $0.15 at $180.00 and February live cattle are up $0.05 at $181.05. The cash cattle market is still quiet with no bids having developed yet. Asking prices are noted in the South at $184 to $185 but have not yet been established in the North.
Boxed beef prices are lower: Choice down $0.36 ($303.55) and select down $0.61 ($291.61) with a movement of 107 loads (68.13 loads of choice, 28.85 loads of select, zero loads of trim and 9.59 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading mixed as the market's nearby contracts seem to be holding their breath -- waiting to see how just how much interest rates are decreased by and waiting to see if the spot December live cattle contract can indeed close above its 40-day moving average. October feeders are down $0.82 at $239.92, November feeders are down $0.30 at $238.00 and January feeders are steady at $233.02. It's likely that the market will merely chop sideways through the afternoon as it waits to see what support (or lack thereof) stems from the live cattle market's trade today.
LEAN HOGS:
Between seeing ample support from traders and the morning's positive note of stronger pork cutout values, the lean hog complex is trading higher into Wednesday's noon hour with ease. October lean hogs are up $0.25 at $82.07, December lean hogs are up $0.05 at $73.75 and February lean hogs are up $0.07 at $76.87. I'm somewhat surprised to see that the morning's cash hog market has only traded 375 head as I thought that packers would need to be at least aggressive one more day this week to avoid being short bought. So, monitoring the afternoon's cash report will be important this afternoon.
The projected lean hog index for 9/17/2024 is steady at $84.22, and the actual index for 9/16/2024 is down $0.16 at $84.22. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However, we can see that only 375 head have traded, and that the market's five-day rolling average now sits at $76.55. Pork cutouts total 181.85 loads with 162.44 loads of pork cuts and 19.41 loads of trim. Pork cutout values: up $1.08, $96.08.
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