Hogs, cattle finish week in the red

“October cattle closed moderately lower on the session as a bearish tilt to outside market forces and weakness in agricultural markets helped to pressure,” the Hightower Report said. “The 50% mark of the June 16-July 19 break leaves good support at the 127.27 level but the market pushed below this support.”

“October hogs closed sharply lower on the day and the market fell sharply from Tuesday high of 94.05 to a low of 87.27 today,” the Hightower Report said. “The market opened steady and experienced choppy and two-sided trade early in the day. The selling pushed the market down to the lowest level since July 15.”

Hogs, cattle finish week in the red

“October cattle closed moderately lower on the session as a bearish tilt to outside market forces and weakness in agricultural markets helped to pressure,” the Hightower Report said. “The 50% mark of the June 16-July 19 break leaves good support at the 127.27 level but the market pushed below this support.”

“October hogs closed sharply lower on the day and the market fell sharply from Tuesday high of 94.05 to a low of 87.27 today,” the Hightower Report said. “The market opened steady and experienced choppy and two-sided trade early in the day. The selling pushed the market down to the lowest level since July 15.”

Lean hogs

In weighted average negotiated prices for barrows and gilts, USDA reported;

• National carcass base was 88 cents lower to $101.70/cwt.
• National live fell $5.43 to $76.65
• Iowa-Minnesota carcass base was $103.84

USDA reported carcass cutout values this afternoon were up 2 cents to $123.89/cwt.

“After four days down and with a discount to the cash market, the market may find some underlying support soon,” the Hightower Report said. “However, supplies are on the rise and China demand is declining and that leaves a bearish fundamental tilt to the market. Pork cutout values at midsession came in at $124.97, up $1.10 on the day.”

“The last underlying factor in the market has been the finding of African swine fever in the Dominican Republic,” Total Farm Marketing said. “Though not here in the U.S., it is close to home and could be making the market nervous in the near term. This push lower overall is more technically driven, and that technical picture looks weak into the weekend.”

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Cattle

Boxed beef cutout values this afternoon were higher on both Choice and Select, the USDA said.

• Choice was up $3.24 to $278.46/cwt.
• Select rose $2.37 to $259.19.

In negotiated cash sales in Nebraska, the USDA reported 2,097 head sold live for $122-123, and 620 head sold live for $195-196. In Iowa/Minnesota, there were 3,876 head sold live for $123-126, and 670 head sold dressed for $193-200.

The long-term fundamental picture provides some optimism. “The longer-term fundamentals look positive with declining production in the weeks and months ahead, and a still positive tilt to consumer demand for beef,” the Hightower Report said. “Boxed beef cutout values that midsession came in at $278.82, up $3.60 on the day.”

“The concerning fundamental was the rise in carcass weight, as that factor starts to seasonally turn heavier,” Total Farm Marketing said. “Packers have been keeping kill around the 120,000 head/day level, and if weights climb, will have ample product to supply the market, and keep the cash market in check.”