It would appear as though the market is played out for the week! Live cattle, lean hogs, and deferred feeder cattle markets are all lower while corn remains steady to unchanged.
Friday’s livestock complex opened to a “checked out, ready for Saturday” market, and it appears that the day will end that way, too. December corn is trading up 1/4 cent. Dow Jones is 58.07 points and NASDAQ is down 17.69 points.
Friday’s live cattle opened at $105.85 and has since dropped to $105.22. Some experts believe that the has rally subsided with prices well above $100 and market interest diminishing. On the bright side, cash prices have gained some leverage this week, the Cattle on Feed Report is expected to be bullish, and if the market closes sideways on Friday, there’s worse things that could happen.
As of midday limited cash trade has taken place, indicating that packers and feeders are both being unwilling to negotiate and even though the Cattle on Feed Report is expected to be bullish, trade doesn’t typically happen on Friday before its unveiling. Bids of $101 remain in Kansas, $102 live in Nebraska and $160 to $162 dressed in Nebraska and Iowa.
Boxed beef cutouts at midday are mixed with choice down $0.90 ($217.27) and select up $0.53 ($192.69). Friday’s offering of boxed beef movement came to 78 loads total (24.98 loads of choice cuts, 17.94 loads of select cuts, 15.05 loads of trimmings and 19.72 loads of ground beef).
Although most of the livestock complex is lower Friday at midday, nearby feeder cattle contracts remain positive with limited interested. October feeder cattle opened Friday at $139.12 and have since then moved slightly to $139.27, up $0.55.
Thursday’s USDA actual slaughter report came out showing an increase in steer carcass weights up nine pounds from the last report to 893 pounds for the week ending September 7. With limited movement on the negotiated trade the last two weeks, feeders will have to keep in mind that with shorter days and cooling nights, carcass weights are bound to keep getting bigger.
Again, early Friday morning South Korea mentioned that they are inspecting more suspect cases of African swine fever near the borders of North Korea. Lean hog contracts haven’t faired Friday morning’s open and midday extremely well, even with higher cutout values. Friday’s lean hog contract opened at $67.82 and has since then dropped to $67.30.
The projected lean hog index for 9/19/19 is down $0.52 at $55.80 and the actual index for 9/18/19 came in $0.44 lower at $56.32. Prices are slightly lower again Friday morning on the National Direct Morning Hog Report, down $0.37 at a weight average of $43.99, ranging from $40.00 to $45.00, on 9,060 head sold with a five-day rolling average of $44.77. Pork cutouts totaled 171.14 loads, with 158.60 loads of pork cuts and 12.54 loads of trimming. Pork cutout values came in $1.44 higher at $70.46.