DTN Midday Livestock Comments 08/26 12:07

DTN Midday Livestock Comments 08/26 12:07 Livestock Contracts Facing Midweek Pressure The livestock sector continues to bear lower as traders are uninterested and unwilling to move the market higher. ShayLe Stewart DTN Livestock Analyst General Comments It's been a back and forth day for the livestock contracts as strength was flourishing throughout the lean hog sector earlier this week but Wednesday has simply led the market lower, and the feeder cattle contracts attempt to rally higher has quickly been shot down. Wednesday's online Fed Cattle Exchange spurred some cash cattle trade as cattle are not only moving in the South but also a few are trading in the North. December corn is down 3/4 cent per bushel and December soybean meal is down $1.30. The Dow Jones Industrial Average is up 23.55 points and NASDAQ is up 185.65 points. LIVE CATTLE The live cattle complex struggles like the rest of the livestock sector as traders seem uninterested therefore leaving the market unable to do anything but scale lower. October live cattle are down $1.92 at $106.85, December live cattle are down $1.52 at $110.20 and February live cattle are down $1.42 at $112.80. Despite lower cash cattle trade and weakness throughout the board -- packers are enthused to see boxed beef prices continuing to move higher. Wednesday has solidified the fact that most of the week's trade is going to be slightly lower than a week ago as cattle continued to trade live for $105, and some Northern cattle have traded for $167 dressed. Given that packers have been extremely aggressive the last two months in their cash cattle buying, as the market looks past Labor-Day, packers know that they hold the majority of the market's leverage which makes it easy to push prices lower. Wednesday's cash cattle trade didn't become active until after the Fed Cattle Exchange where 779 head sold for $105 to $105.25. Boxed beef prices are higher: choice up $1.63 ($231.31) and select up $1.90 ($214.16) with a movement of 75 loads (37.14 loads of choice, 6.97 loads of select, 14.97 loads of trim and 15.88 loads of ground beef). FEEDER CATTLE Feeder cattle contracts aspired to trade higher but as the day's pressure continued to grow, the market was redirected and now continues to trade lower. September feeders are down $0.97 at $142.07, October feeders are down $0.95 at $142.12 and November feeders are down $1.05 at $142.67. Thankfully sales throughout the countryside continue to be well received and with the majority of corn contracts trading slightly lower - buyers can go about buying without so much pressure. LEAN HOGS The lean hog complex ran higher while traders were interested but as the market realizes that Labor Day is right around the corner and that holiday buying will soon subside, traders are letting the complex fall lower again. October lean hogs are down $0.92 at $55.02, December lean hogs are down $0.67 at $56.00 and February lean hogs are down $0.22 at $62.55. Through the market's recent rally, the complex was able to rise above resistance levels at $55.00, but as pressure continues to grow the market may be dropping beneath the threshold as the day continues. The projected lean hog index for 8/24/2020 is up $0.54 at $56.60, and the actual index for 8/21/2020 is up $0.55 at $56.06. Hog prices are lower on the National Direct Morning Hog Report, down $0.34 with a weighed average of $41.94, ranging from $38.00 to $42.50 on 4,611 head and a five-day rolling average of $39.90. Pork cutouts total 201.06 loads with 192.96 loads of pork cuts and 8.11 loads of trim. Pork cutout values: down $2.49, $72.32. ShayLe Stewart can be reached [email protected] (c) Copyright 2020 DTN, LLC. All rights reserved.