DTN Midday Livestock Comments 09/02 11:58

DTN Midday Livestock Comments 09/02 11:58 Cattle Contracts Diving $1.00 to $2.00 Lower It's been a tough day for the cattle contracts as lower prices seem to keep getting lower and lower. ShayLe Stewart DTN Livestock Analyst General Comments The market's downward flurry has continued as cattle contracts dip $1.00 to $2.00 lower signaling that the market's bottom has yet to be established for the near term. Meanwhile the lean hog contracts keep with their steady pace rallying mostly $0.20 to $0.30 Wednesday morning and continuing to see gains on both cutout values and cash prices. December corn is up 1/4 cent per bushel and December soybean meal is down $0.10. The Dow Jones Industrial Average is up 210.65 points and NASDAQ is down 5.38 points. LIVE CATTLE The live cattle complex is in the same boat as feeder cattle contracts as traders step away from the market and leave the complex with no other option but to drift lower. October live cattle are down $1.37 at $104.07, December live cattle are down $1.15 at $108.00 and February live cattle are down $1.02 at $111.72. The market's been in limbo through the last weeks' worth of trade as lower prices were inevitable, but bulls hoped that the market's short-term low was established, but bears had different plans in mind. Wednesday's cash cattle trade has been limited with cattle trading in Texas and Kanas for $103 but asking prices still remain at $105. And northern cattle traded in Nebraska for $163 -- steady with Tuesday's minimal trade. The Fed Cattle Exchange Auction listed a total of 436 head, with 365 actually sold, 71 head listed as unsold, and zero head listed as PO (Passed Offer). The state by state breakdown looks like this: Kansas 71 total head, all went unsold; Texas 365 total head, all of which sold at $103.00. The delivery date/weighted averages breakdown is as listed: 1-9-day delivery: 218 head total, all sold, with a weighted average price of $103.00; 1-17-day delivery 218 head total, 147 head sold, with a weighted average price of $103.00. Boxed beef prices are mixed: choice down $1.11 ($227.23) and select up $0.19 ($214.94) with a movement of 61 loads (31.55 loads of choice, 12.06 loads of select, 12.22 loads of trim and 5.48 loads of ground beef). FEEDER CATTLE Feeder cattle contracts are suffering dearly through Wednesday's trade seeing contracts fall anywhere from $1.50 to $2.22 lower. September feeders are down $2.22 at $137.90, October feeders are down $2.00 at $138.67 and November feeders are down $1.97 at $139.55. Signaling a hard-downward turn, traders are not interested in moving the cattle complex higher while uncertainty surrounding the cash market, boxed beef prices and long-term demand remain questionable. LEAN HOGS Compared to the cattle complex, the lean hog market is having a fine day. October lean hogs are up $0.22 at $55.25, December lean hogs are up $0.17 at $55.95 and February lean hogs are up $0.10 at $62.17. The spot October contracts is being modest about its trade above the $55.00 resistance level, the regardless the complex is trading about the threshold. Continuing to be supported by traders who are looking for a less volatile livestock market, and followed through support on behalf of both the cutout value and cash hog prices - the lean hog market is trading healthy through Wednesday's hours. The projected lean hog index for 9/1/2020 is up $0.71 at $57.51, and the actual index for 8/31/2020 is up $0.29 at $56.80. Hog prices are higher on the National Direct Morning Hog Report, up $0.12 with a weighted average of $43.15, ranging from $38.00 to $43.50 on 3,717 head and a five-day rolling average of $43.07. Pork cutouts total 192.28 loads with 164.49 loads of pork cuts and 27.79 loads of trim. Pork cutout value: up $1.01, $75.55. ShayLe Stewart can be reached [email protected] (c) Copyright 2020 DTN, LLC. All rights reserved.