GENERAL COMMENTS:
Buying momentum quickly developed early Tuesday morning, following traders returning from the long holiday weekend and aggressively stepping into September. Nearby live cattle and feeder cattle futures have set new contract highs once again during morning trade, with traders looking for additional fundamental and technical direction in the days and weeks to come. Lean hog futures remain mostly higher, but remain much more subdued than the cattle market during early week trade. December corn is down 1 1/4 at $4.19 and December soybean meal is down $5.60 at $283.4. The Dow Jones Industrial Average is down 515.02 at 45,029.86.
LIVE CATTLE:
Live cattle futures continue to march higher with moderate to active buying redeveloping Tuesday morning when traders returned to the complex following the long weekend and set course for September. October futures moved to new contract highs once again, with prices breaking through the $240 per cwt price threshold. The continued support in futures trade remains solid despite a pullback in beef values in the morning report. Traders still remain bullish on cattle long term, as there seems to be very little resistance in both wholesale and retail beef markets, which would significantly curb this market optimism at this point.
Cash cattle activity remains quiet with both buyers and sellers still busy taking inventory and preparing for the week ahead. Bids and asking prices are not established, and significant trade volume will likely be delayed until much later in the week. Last week, the bulk of trade took place on Thursday and Friday, with Southern live deals showing a range of $238 to mostly $242, $2 higher than the previous week's weighted averages. Northern dressed business had a full range of $380 to $392, mostly $385, $1 lower than the prior week's weighted average basis Nebraska. October live cattle are $0.40 higher at $240.05, December live cattle are $1.05 higher at $241.825 and February live cattle are $0.85 higher at $243.10.
Boxed beef prices are Lower: choice down $1.67 ($413.74) and select down $2.82 ($387.18) with a movement of 52.67 loads (31.71 loads of choice, 11.58 loads of select, 3.79 loads of trim and 5.59 loads of ground beef).
FEEDER CATTLE:
Feeder cattle continue to lead the livestock and cattle complex higher with triple digits seen in spot September contracts at midday after a strong start of the week and month through the morning activity. Traders continue to focus on not only the current market direction, but the fact that cattle traders remain holding a strong long position in cattle contracts indicates that traders are looking for the bullish run across the cattle industry to continue gains seen through the entire feeder cattle complex. August futures are trading $1.45 per cwt higher, at $323.72 per cwt, with traders once again testing contract high levels. The lack of buyer pressure in the cattle market in general, and specifically the feeder cattle futures, has markets pushing even higher with very little resistance currently seen. September feeders are $0.55 higher at $365.325, October feeders are $0.13 higher at $364.6 and November feeders are $0.68 higher at $364.275.
LEAN HOGS:
Lean hog futures are posting positive market shifts in nearby contracts Tuesday morning, although the momentum and intensity of active cattle market gains have still limited buyer support across the entire lean hog complex. December contracts continue to lead the hog market higher, as traders continue to bounce back from moderate pressure over the past few weeks. October lean hogs are $0.55 higher at $95.575, December lean hogs are $0.90 higher at $88.30 and February lean hogs are $0.58 higher at $90.20. Hog Prices are unreported due to confidentiality on the Daily Direct Morning Hog report. Pork Cutouts totaled 150.52 loads with 131.02 loads of pork cuts and 19.50 loads of trim. Pork cutout values are down $1.54 at $114.51.
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