DTN Midday Livestock Comments 08/22 11:46

DTN Midday Livestock Comments 08/22 11:46 Trader Support Leads Livestock Complex Higher Thankfully Thursday's market has lent the livestock complex some support after severe losses were endured earlier this week thanks to continued economic concerns. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENT: After a stressful couple of days for the livestock complex, some relief finally came as all three of the markets are trading higher into Thursday's noon hour. There's a single bid currently offered in the cash market in Nebraska; but at this point it's looking like the bulk of the week's business is done. December corn is down 3 1/4 cents per bushel and December soybean meal is down $4.30. The Dow Jones Industrial Average is down 76.40 points. Thursday's export sales report shared that beef net sales of 15,900 metric tons (mt) for 2024 were down 44% from the previous week and 8% from the prior 4-week average. The three largest buyers were Japan (5,100 mt), South Korea (4,300 mt) and China (2,200 mt). Pork net sales of 19,300 mt for 2024 -- a marketing year low -- were down 7% from the previous week and 34% from the prior 4-week average. The three largest buyers were Mexico (4,700 mt), Canada (3,100 mt) and Japan (3,000 mt). LIVE CATTLE: Besides a little added support from higher boxed beef prices, the market can't put its finger on why the complex is trading higher as fed cash cattle prices are lower this week and ultimately traders willingness to jump back into the game and support the complex seems to be the biggest change factor today. August live cattle are up $1.20 at $182.42, October live cattle are up $0.97 at $175.62 and December live cattle are up $0.97 at $175.25. A sole bid of $184 is currently being offered in Nebraska, but no feedlots have jumped at that offer. A few more clean-up sales here and there are likely, but all in all it's looking like the bulk of the week's trade could be done. Thus far throughout the week Southern live cattle have been marked at mostly $183, which is $2.00 lower than last week's weighted average, and Northern dressed cattle have traded at mostly $293, which is $5.00 lower than last week's weighted average. Boxed beef prices are higher: choice up $1.35 ($316.56) and select up $1.69 ($302.77) with a movement of 62 loads (34.03 loads of choice, 13.31 loads of select, 5.54 loads of trim and 8.85 loads of ground beef). FEEDER CATTLE: At last, the feeder cattle complex is seeing some substantial trader support following the brutal pressure endured earlier in the week. August feeders are up $2.72 at $241.97, September feeders are up $2.70 at $238.37 and October feeders are up $2.75 at $234.42. Thankfully, the live cattle complex is also trading higher, which is giving the feeder cattle market the go ahead to confidently trade higher into the day's noon hour. LEAN HOGS: Traders don't seem give to two hoots about the morning's export report, which shared a marketing year low of only 19,300 metric tons (mt) being reported. But even so, the lean hog complex is rocking and rolling into Thursday's noon hour fully higher. October lean hogs are up $2.05 at $78.20, December lean hogs are up $1.70 at $69.57 and February lean hogs are up $1.30 at $72.85. It is helpful that both cash prices and pork cutout values are higher, but on top of that, traders seem invested and fully on board with advancing the complex regardless of immediate market fundamentals. The projected CME Lean Hog Index for 8/21/2024 is down $0.38 at $88.83, and the actual index for 8/20/2024 is down $0.50 at $89.21. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.21 with a weighted average price of $83.36, ranging from $81.00 to $84.50 on 1,254 head and five-day rolling average of $83.45. Pork cutouts total 143.93 loads with 129.00 loads of pork cuts and 14.93 loads of trim. Pork cutout values: up $2.18, $96.73. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.