GENERAL COMMENTS:
The livestock complex is again trading mixed as the cattle contracts dip lower upon not seeing enough fundamental support in the market, but the lean hog contracts are trading higher. No new cash cattle trade has developed, but bids are on the table in Nebraska. December corn is down 3 cents per bushel and December soybean meal is down $4.80. The Dow Jones Industrial Average is down 183.57 points and the NASDAQ is down 176.07 points.
LIVE CATTLE:
Without seeing more fundamental support, the live cattle complex is trading lower into midday Thursday as traders are disappointed to note the decline in fed cash cattle prices again this week, and aren't overly thrilled with boxed beef prices being mixed again this morning. December live cattle are down $2.80 at $213.50, February live cattle are down $2.65 at $214.62 and April live cattle are down $2.60 at $215.20. Bids have been renewed again in Nebraska ($345 dressed and $218 live), but no more sales have been noted at this point. So far this week Northern dressed cattle have traded at mostly $345, which is $6.00 lower than last week's weighted average. Southern live cattle have traded at $224, which is $4.00 lower than the previous week's weighted average.
Boxed beef prices are mixed: choice down $0.29 ($370.94) and select up $0.29 ($353.84) with a movement of 70 loads (41.76 loads of choice, 9.74 loads of select, 4.94 loads of trim and 13.91 loads of ground beef).
FEEDER CATTLE:
To no one's surprise, with the live cattle contracts still trading lower, the feeder cattle contracts again have opted to follow suit. January feeders are down $5.87 at $315.67, March feeders are down $5.40 at $308.00 and April feeders are down $4.72 at $306.00. This weaker trend will likely continue through the day's close as the week's fundamental support has simply been lacking.
LEAN HOGS:
Again today, the lean hog contracts are trading higher as traders seem to believe that the market has trended lower enough for the time being. It is helpful that pork cutout values are a tick higher this morning, but the volume of cash hogs traded over the week has been relatively thin. December lean hogs are up $0.60 at $79.45, February lean hogs are up $0.77 at $79.80 and April lean hogs are up $0.80 at $83.87.
The projected lean hog index is delayed from the source. Hog prices are on the Daily Direct Morning Hog Report average $72.24, ranging from $70.00 to $75.00 on 390 head, and a five-day rolling average of $75.29. Pork cutouts total 174.44 loads with 121.08 loads of pork cuts and 53.36 loads of trim. Pork cutout values: up $0.34, $93.48.
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