Thursday Midday Livestock Market Update - Mixed Tones Dominate the Complex

GENERAL COMMENTS:

The livestock complex is again trading mixed, as the cattle sector remains cautious and leery of trading any higher. However, the lean hog contracts have found some technical footing and are trading higher. No new cash cattle trade has developed today. December corn is down 1/4 cent per bushel and December soybean meal is up $0.40. The Dow Jones Industrial Average is up 216.37 points and the NASDAQ is up 78.34 points.

LIVE CATTLE:

The mundane sideways to somewhat lower chop is continuing in the live cattle complex, as no further trade has developed in the fed cash cattle market, and traders remain concerned that the market could be overbought. October live cattle are down $1.55 at $236.77, December live cattle are down $1.65 at $238.67 and February live cattle are down $1.37 at $240.20. At this point, it's looking like traders could continue with their cautious tone throughout the day as the market isn't seeing anything wild and unexpected developing yet in terms of fundamental support, and even if the fed cash cattle market were able to trade a tick higher, there's a chance that traders could be numb to positive development. This morning, asking prices are around $244 to $245 in the South, but they are still not fully established in the North.

There was a thin movement of cattle that sold yesterday afternoon at $242 in the South, which is steady with last week's weighted average, and some dressed trade was reported in the North at $383 to $385, which is $1.00 to $2.00 lower than last week's weighted average.

Boxed beef prices are unavailable as the USDA is currently dealing with IT issues.

FEEDER CATTLE:

As traders remain uncertain about the market's technical position, the downward trend continues to be the livestock market's theme thus far through Thursday's trade. September feeder cattle are down $0.70 at $361.37, October feeder cattle are down $1.02 at $360.47 and November feeder cattle are down $1.22 at $359.85. And once again, this nervousness remains an issue for the market in terms of its position throughout the futures complex, but is not a concern in the countryside as feeder cattle continue to see incredible demand thanks to the continued interest of buyers. Just Wednesday afternoon, the CME feeder cattle index closed at $365.43.

LEAN HOGS:

Following Wednesday's sharp sell-off, the lean hog complex has again seemed to find some footing in the marketplace as it's back to trading higher. October lean hogs are up $1.15 at $94.97, December lean hogs are up $0.45 at $87.57 and February lean hogs are up $0.52 at $89.85. It's likely that the resistance pressure that caused the market to fall on Wednesday will be a limiting factor for the market any time soon unless fundamental support gains substantial ground and lends traders substantially more support.

The projected lean hog index is delayed from the source. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.17 at $105.82, ranging from $100.00 to $109.00 on 3,205 head and a five-day rolling average of $105.78. Pork cutouts total 165.43 loads with 146.66 loads of pork cuts and 18.76 loads of trim. Pork cutout values: down $2.00, $112.73.