GENERAL COMMENTS:
What a day it was for the livestock complex as all three of the markets closed higher, but the biggest takeaway from Friday's end was the positive trade in the fed cash cattle market. Southern live cattle traded at mostly $240, which is $5.00 higher than last week's weighted average and Northern dressed cattle traded at $385, which is $2.00 higher than last week's weighted average. December corn is down 1/4 cent per bushel and December soybean meal is down $2.70. The Dow Jones Industrial Average is up 868.26 points and the NASDAQ is up 405.10 points.
From Friday to Friday the livestock futures scored the following changes: August live cattle up $3.70, October live cattle up $7.22; August feeder cattle up $14.20, September feeder cattle up $15.33; October lean hogs up $1.10, December lean hogs up $1.35; September corn up $0.05, December corn up $0.06.
LIVE CATTLE:
Is there anything more powerful, or more exhilarating than a market that's fueled by sheer fundamental strength? This past week was one of the most robust weeks ever traded in the cattle complex, and there's no telling when the market's support is going to end. From the continued demand from consumers to the unwillingness of feedlot managers to let fed cash cattle trade cheaper, and the total buy-in and support of traders, this week is one for the history books.
October live cattle closed $3.15 higher at $237.87, December live cattle closed $2.75 higher at $239.15 and February live cattle closed $2.42 higher at $240.20. Some light trade began to be reported shortly after the noon hour at $240 in the South, which is $5.00 higher than the previous week's weighted average, and throughout the week, Northern dressed cattle traded at $385, which is $2.00 higher than last week's weighted average.
Friday's slaughter is estimated at 96,000 head, 14,000 head more than a week ago and 19,000 head less than a year ago. Saturday's slaughter is projected to be around 1,000 head. The week's total slaughter is estimated at 547,000 head, 17,000 head more than a week ago and 61,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.05 ($407.91) and select up $0.06 ($383.66) with a movement of 118 loads (91.38 loads of choice, 11.07 loads of select, 10.58 loads of trim and 5.24 loads of ground beef).
MONDAY'S CATTLE CALL: Steady/somewhat higher. So long as beef demand remains this strong, packers are likely going to remain engaged in the market as they can't afford to be too short-bought.
FEEDER CATTLE:
The feeder cattle complex successfully rallied all throughout the day as the market shot higher, thanks to the continued support the market's fundamentals are lending traders. Whether that be exceptional demand in the countryside, stronger fed cash cattle prices, rallying beef demand, or the willingness of traders to continue to support the contracts at these levels, the market had all it could have wished for this week. Do note that the feeder cattle contracts closed higher every single day this week, and of course, the market again obtained a new contract high this afternoon. September feeders closed $4.65 higher at $362.67, October feeders closed $4.40 higher at $362.50 and November feeders closed $4.20 higher at $360.85. And the monthly Cattle on Feed report that came out this afternoon thankfully didn't sharpen any concern, as placements were again lighter than a year ago, even though more calves are hitting the sale barns sooner than the market's typical norm.
The Oklahoma Weekly Cattle Auction Summary shared that compared to last week, feeder steers traded $5.00 to $7.00 higher. Steer calves traded $2.00 to $7.00 higher, except those weighing 500 to 600 pounds, which traded $17.00 higher. Feeder heifers sold $6.00 to $10.00 higher, except those weighing 800 to 850 pounds, which traded $20.00 stronger. Heifer calves weighing over 500 pounds sold $4.00 to $8.00 higher, and those weighing under 500 pounds sold $15.00 to $20.00 higher. The market report did note that more calves are being brought to town earlier this year than compared to normal. Feeder cattle supply over 600 pounds was 59%. The CME feeder cattle index 8/21/2025: up $2.74, $350.18.
LEAN HOGS:
Although the lean hog complex was pressured earlier in the week, the market sprang into action on Friday as the contracts shot higher upon seeing continued pork demand and upon establishing some footing in the futures complex. October lean hogs closed $1.27 higher at $91.20, December lean hogs closed $1.27 higher at $84.37 and February lean hogs closed $1.07 higher at $87.12. Noting the day-over-day changes in the major pork cuts was interesting; however, as the picnic jumped $11.29 higher. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.69 with a weighted average price of $107.66 on 2,498 head. Pork cutouts total 278.02 loads with 236.90 loads of pork cuts and 41.12 loads of trim. Pork cutout values: up $0.36, $112.96. Friday's slaughter is estimated at 462,000 head, 2,000 head more than a week ago and 13,000 head less than a year ago. Saturday's slaughter is projected to be around 51,000 head. The CME lean hog index 8/20/2025: down $0.25, $108.32.
MONDAY'S HOG CALL: Lower. Packers rarely push hog prices higher on Mondays.
No comments:
Post a Comment