GENERAL COMMENTS:
It was a rallying type of day for the livestock complex as all three of the markets successfully closed higher, thanks to traders' willingness to continue to support the contracts following Monday's nervousness. Still no cash cattle trade has developed. October lean hogs are up $2.03 at $93.425, December corn is down 2 3/4 cents per bushel and December soybean meal is up $2.40. The Dow Jones Industrial Average is up 135.60 points and the NASDAQ is up 94.98 points.
LIVE CATTLE:
I think it's safe to say that the live cattle complex is no longer trembling and in disarray about the news shared over the weekend about a human contracting New World screwworm. The market closed well over $1.00 higher in all of its contracts. More than anything, traders seemed encouraged by the boxed beef market's strong rally, which helped give them confidence to support the contracts all the way through the day's end. October live cattle closed $1.37 higher at $238.20, December live cattle closed $1.87 higher at $239.92 and February live cattle closed $1.87 higher at $241.25. Today's close in the spot October contract did reach a new contract high for the contract. No cash cattle trade developed throughout the day, but asking prices are noted in the South at $243 and remain unestablished in the North.
Tuesday's slaughter is estimated at 118,000 head, 2,000 head more than a week ago and 1,000 head less than a year ago.
Boxed beef prices closed higher: choice up $4.68 ($413.17) and select up $5.38 ($390.76) with a movement of 106 loads (70.55 loads of choice, 20.08 loads of select, 5.29 loads of trim and 10.50 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady/somewhat higher. Packers were able to get some more cattle bought last week, but with boxed beef prices rallying, they still may tango with feedlot managers in this week's market, as they don't have a surplus of cattle positioned around them.
FEEDER CATTLE:
The feeder cattle complex arrived at Tuesday's market ready to get to work and didn't weaken a bit. With ample support encouraging the contracts to trade higher, traders felt like it was an easy decision to push the contracts onward, even after they gapped the contracts higher at this morning's start. September feeders closed $3.15 higher at $365.05, October feeders closed $3.02 higher at $363.77 and November feeders closed $2.90 higher at $361.82. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers and heifers traded $4.00 to $10.00 higher and steer calves sold $10.00 to $20.00 higher, with spots even higher than that. Heifer calves under 500 pounds traded unevenly steady, but those over 500 pounds traded $8.00 to $12.00 higher. Feeder cattle supply over 600 pounds was 61%. The CME feeder cattle index 8/25/2025: up $1.25, $359.17.
LEAN HOGS:
The lean hog complex traded higher throughout the day, but the market truly grabbed another gear after the day's noon hour and powered higher through the day's close. October lean hogs closed $2.02 higher at $93.42, December lean hogs closed $1.17 higher at $85.92 and February lean hogs closed $0.62 higher at $88.12. Today's close was a powerful move for the lean hog complex as the spot October contract was able to blow through the market's resistance at $93.00, even without pork cutout values being higher. The biggest reason why the carcass price struggled was the $10.34 decline in the picnic. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.73 with a weighted average price of $108.40 on 5,904 head. Pork cutouts totaled 316.67 loads with 258.54 loads of pork cuts and 58.13 loads of trim. Pork cutout values: down $1.12, $113.05. Tuesday's slaughter is estimated at 480,000 head, 3,000 head more than a week ago and 4,000 head more than a year ago. The CME lean hog index 8/22/2025: down $0.57, $107.27.
WEDNESDAY'S HOG CALL: Steady. With pork cutout values a tick lower, the cash market may be simply steady on Wednesday.
No comments:
Post a Comment