HOGS

• Lean hog futures saw front month futures pressured, while deferred months saw some support.  Weights have been gaining and are sitting at highs for this time of the year. 
• Pork packers processed around 2.576 million head during this week last year. Post-Labor Day, Saturday slaughter levels typically increase.
• Cash market national weighted average gain $2.58 on Monday.  The cash market remains sharply above year-ago levels.
• Cutout was also higher on Monday with gains seen in all but the loin. 
• Argentina:  The Secretariat of Agriculture, Livestock, and Fisheries of the Ministry of Economy reported sustained growth in meat consumption in Argentina, with an average increase of 4.6% over the last year. Per capita pork consumption reached 17.92 kg during the period analyzed, representing a 7.7% increase over the previous year, equivalent to an additional 1.28 kg per inhabitant. This growth reflects greater acceptance by consumers and the pork industry's sustained efforts to ensure a stable and high-quality supply.

GRains

• Dec corn is down 2. Nov beans up 1 3/4. Equities are higher, and crude oil is higher. Gold is higher.
• National crop condition ratings slipped this week, with corn down one point to 68% good/excellent and soybeans down a point to 64%. Corn remains ahead of both last year’s 64% and the five-year average of 57%, while soybeans trail last year by a point but still top the 59% five-year norm. Crop progress remains broadly in line with benchmarks, as harvest activity was first reported at 4% complete as of Sunday—behind last year’s 5% but slightly ahead of the 3% five-year average.
• China sharply increased its soybean imports in August, buying 12.3 million metric tons — a record high for the month. The surge comes just ahead of the U.S. soybean export season. USDA data shows that last year China sourced roughly two months’ worth of its soybean supply from the U.S., but ongoing trade tensions have pushed the country to depend more heavily on Brazil. As of Friday, China’s soybean reserves reached around 6.8 million metric tons, the largest since March.

CATTLE

• Live cattle futures behaved much like hog futures gaining more in the deferred months than up front.  The cattle complex closed higher in all but front month live cattle.
• Last week saw an incredibly tight Labor Day week, tight production gives no relief to end users. In this tight slaughter environment a decent amount of cattle were purchased, and at lower values.
• Show lists were slightly larger in Kansas, and smaller in Nebraska and Texas leaving over all lists smaller. Packers will be purchasing for a full week next week. Estimates of this week’s slaughter are around 550,000 head. Sales volumes last week were only moderate leaving packers with no excess of inventory entering this week. Asking prices are higher.
• Cutout was mixed with choice down 1.07 and select up 0.15

Weather

• Heavy rains fell in central KS yesterday but coverage remains light up into the weekend, mostly confined northwest; rains will increase in the Plains and WCB going forward, still dry in the eastern half of the belt. Temperatures will stay safely above normal now right up into late September.