Cattle traders seem to have a sense of nervousness Wednesday morning after attempting to test all-time high prices during early week trade. The overall tone of the cattle market has not significantly changed, but with current price levels, there seems to be a growing sense of uneasiness across the complex. General pressure in most ag markets and the majority of commodity markets Wednesday is adding to the selling pressure seen in both cattle and lean hog futures during the first few hours of trade Wednesday morning. December corn is down 6 1/2 at $4.165 and December soybean meal is down $1.20 at $282.6. The Dow Jones Industrial Average is down 162.27 at 45,133.54.
LIVE CATTLE:Live cattle futures have moved lower during early trade Wednesday, although compared to the rest of the livestock market, the live cattle complex seems to be holding the best of all markets. October futures are leading the downward shift in morning losses, but it is important to remember that just because prices are not continuing the aggressive rocket-like shift higher, this does not mean that the market is at or near its top. As of last week, traders continue to maintain a strong net long position in the cattle market in general, and specifically live cattle futures point to continued optimism and positive expectations for price levels in the days and weeks to come. More focus is shifting to the ability to continue to move wholesale and retail beef levels and maintain current or higher price levels now that the summer grilling season is wrapping up. Cash cattle activity has been sluggish once again, with a slow start to the day this morning; bids and asking prices are not established. Significant trade volume will likely be delayed until Thursday and/or Friday. At this time, bids and asking prices are undeveloped in all areas. October live cattle are $0.68 lower at $238.85, December live cattle are $0.50 lower at $240.65 and February live cattle are $0.45 lower at $242.025.
Boxed beef prices are higher: choice up $2.63 ($416.05) and select up $1.59 ($387.76) with a movement of 70.71 loads (39.14 loads of choice, 13.34 loads of select, 9.19 loads of trim and 9.04 loads of ground beef).
FEEDER CATTLE:Feeder cattle futures are leading the market lower midweek, with triple-digit losses seen in all nearby and most deferred contract months. October futures are posting the most aggressive pressure with prices over $2 per cwt lower at times during morning trade. The combination of widespread pressure in most ag markets and most commodity markets Wednesday is causing buyer apathy at this point. It is important to remember that a down day in the market does not indicate a lower-moving market in general, as the tone of the market still remains extremely aggressive with prices near all-time highs. Although it is never comfortable to watch, light to moderate corrections within a market are part of a healthy moving market, and many times are needed in order to draw additional buyers to the market over the coming days and weeks. Cash markets remain active with the USDA National feeder cattle summary released Tuesday reporting steers and heifers selling 5.00 to 10.00 higher compared to the previous week. The supply of feeders was moderate as cooler weather made transporting livestock much less stressful, and overall volume was pretty large for a late summer week. This is the first time in 12 weeks that auction receipts topped 150K as ranchers are taking advantage of the handsome prices in the auction arenas nationwide. September feeders are $1.60 lower at $362.65, October feeders are $1.78 lower at $361.925 and November feeders are $1.90 lower at $361.575.
LEAN HOGS:Lean hog futures are under pressure Wednesday morning, with outside market softness becoming a larger focus midweek in the hog complex. October futures continue to lead the market lower with triple-digit losses as traders continue to adjust to the current market shifts, with a portion becoming more aggressive in rolling to the December contracts. Even though prices have fluctuated over the past few weeks, and uncertainty about long-term export demand remains a significant concern, prices are still well above the 40-day moving average, which is helping add technical support to the entire complex. October lean hogs are $1.15 lower at $94.40, December lean hogs are $0.80 lower at $87.375 and February lean hogs are $0.68 lower at $89.40. Hog Prices are lower on the Daily Direct Morning Hog report, down $1.21 with a weighted average of $105.65, ranging from $90.00 to $108.00 on 4,030 head with a five-day rolling average of $105.75. Pork Cutouts totaled 262.89 loads with 228.23 loads of pork cuts and 34.66 loads of trim. Pork cutout values are down $1.54 at $114.51.
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