CattleLink Market View

CattleLink Market View

Live cattle: All in all, last week was a moderately successful week for the live cattle complex, as the spot October contract gained $1.78 throughout the week. It was impressive that boxed beef demand didn’t decline, given that retailers were done buying for the holiday weekend. And the fed cash cattle market saw mixed interest as Southern live cattle traded at $242, which is $2 higher than the previous week’s weighted average, but Northern dressed cattle traded at $385, which is $1 lower than the previous week’s weighted average.

Feeder cattle: The feeder cattle complex followed the direction of the live cattle market closely, but that didn’t deter demand in the countryside whatsoever, as the CME feeder cattle index broke above $365 for the first time ever on Aug. 28.

Lean hogs: The lean hog market had a powerhouse week last week, as the futures complex roared higher every single day. And although the market’s fundamentals weren’t overly supportive, traders elected to rally the futures complex, as they saw an opportunity in the marketplace.

Corn: December corn futures rose 8 3/4 cents over last week, closing at $4.20 1/4, the highest close for the contract in over a month and the first close above the 50-day moving average since June 6. Short-covering into month end is the most likely reason for the late-week strength, along with disease and dryness concerns in the Eastern and Southern reaches of the Corn Belt.

Soybean Meal: December meal futures fell $2.50 per ton last week to $289, dropping for the second straight week after a strong price rally through the middle of August. For now, the overarching trend in soybean meal futures is still seen as down.