Date: August 28, 2023
Cattle futures were higher on Friday locking in weekly gains. Lean hogs traded very wide ranges last week, in the end finishing the week $2+ lower as pork prices crashed on Friday due to bellies down over $58. August live cattle held nearby support last week and negotiated cash trade held steady. Trade in the South reported at $178 to $179 live and trade in the North at $185 live and $292 to $295 dressed.
Weekly closes for livestock futures and meats…August Live Cattle +$2.15, October +$2.35, August Feeders +$2.05, September +$2.67, October Lean Hogs -$2.30, December -$2.47. Choice Boxed Beef +$1.79 at $317.90 and Pork Carcass Cutout -$12.75 at $93.42.
Oklahoma Weekly Cattle Auction Summary
Livestock Weighted Average Report for 8/20/2023 – 8/26/2023
Receipts: Current Week 21,014 Last Week 31,039 Last Year 32,490
Compared to last week: Feeder steers steady to 3.00 lower. Feeder heifers 2.00-3.00 lower. Demand moderate to good. Steer calves 2.00- 4.00 lower. Heifer calves 8.00-10.00 lower, except 500-600 lbs steady. Demand moderate for calves. High pressure systems has a strong hold on Southern and Midwest states with temperatures in many areas of the country topping at 100 plus degrees. This is limiting demand for calves.
Cattle slaughter last week estimated at 626,000 head, up 10,000 from the week previous but down 52,000 from last year. Beef production last week estimated at 510.6 million pounds with year to date -5.0% vs. last year and slaughter -4.2%.
Hog slaughter last week estimated at 2,500,000 head, up 86,000 compared to the week previous and up 88,000 compared to a year ago. Pork production estimated at 518.4 million pounds last week with year to date +0.4% vs. last year and slaughter +1.4%.
Boxed beef cutout values on Friday higher on moderate to weak demand with 79 loads sold.
Choice Cutout +.27 @ 317.90, Select Cutout +.76 @ 292.67
CME Feeder Cattle Index @ 245.59, Lean Hog Index @ 95.18
Pork Carcass Cutout -11.50 @ 93.42
August live cattle chopping sideways over a month now and will expire later this week holding nearby support at $177.50 and resistance at $181.70. August feeders choppy/rangebound trade for the past couple months and also expiring at the end of the month with nearby support at $245 then $243.40 and resistance at $250. October lean hogs have support at $77.75 and resistance at the August high up at $86.75.
Soybeans continued to lead the grains higher as the hot and dry conditions continued throughout the Corn Belt all week. Temps back to normal for most of this week but back to excessive heat and no moisture still in the extended forecasts. The Pro Farmer fall crop tour wrapped up and as expected published national yields lower than USDA in August. Their national corn yield is at 172 BPA, down from USDA’s 175.1, but they also feel harvested acres will be 675K higher due to recent FSA acreage data. Their national soybean yield is at 49.7 BPA compared to USDA’s 50.9 in August. Corn and beans will continue to be supported this week based on recent weather and forecasts doing damage to the fall crops across all major producing states. All wheat contracts hanging near their recent or contract lows, yet still not able to garner much new export business.
Weekly closes in the grains… September Corn -$.08 ¾, December -$.05, September Soybeans +$.18 ¼, November +$.34 ½, September KC Wheat +$.00 ½, December +$.03 ¾, September Chicago Wheat -$.20, December -$.17 ¼, September MPLS Wheat -$.27, December -$.15 ¾, September Soybean Meal +$18.9/T, December +$28.5/T.
Grains were mixed overnight with soybeans still the leader higher and wheat the leader lower. November soybeans gapped higher overnight as the markets continue to pay close attention to the U.S. weather forecasts. Soybeans finished the overnight 6 to 11 higher, corn 4 higher and wheat 1 to 7 lower. Outside markets have equities higher, US$ steady and energies trading both sides of unchanged. USDA announced a couple private sales this morning…123,000 MT or 4.8 MBU of new crop corn sold to Mexico and 296,000 MT or 10.9 MBU of new crop soybeans sold for delivery to unknown destinations.
Weather this week has more seasonal temps but still no moisture except for some scattered rains in the Southwest and potentially heavy rains along the East Coast. The 6-10 and 8-14 day outlooks showing above normal temps and below normal moisture for all except on the West Coast.
December corn holding the support so far with the August low down at $4.73 ½ and resistance at $5.07 ½. November soybeans again gapping higher overnight and rallying over $1 from the August 8th low with support at $13.32, resistance at $14.35 and the contract high at $14.48 ¼. September KC wheat holding support at $7.30 ¼ with resistance at $7.79 ½. September Chicago wheat a new contract low this morning at $5.84 with resistance at $6.62. September MPLS wheat also a new contract low this morning at $7.67 ¾ with resistance at $8.03. September soybean meal has support at $397 with resistance at $434.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com matt@loewenassociates.com
785-537-3336
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