Monday Closing Livestock Market Update - Livestock Futures Settle in Mixed Range

GENERAL COMMENTS

Cash cattle trade remains quiet Monday afternoon following undeveloped bids and asking prices early in the week. Show lists are generally mixed across the country following steady to higher cash cattle trade last week. The expectation is that bids will not be evident until the middle of the week with trade seen late in the week. According to the closing report, the national hog base is $1.21 higher compared with the Prior Day settlement ($47.00-$55.00) weighted average $53.44. The corn futures moved lower in light activity. December futures were 1/2 cent lower Monday. The Dow Jones Index is 15 points lower with the Nasdaq down 3 points.

LIVE CATTLE

Live cattle futures closed mixed to mostly higher, although trade remains sluggish Monday ($0.02 Lower to $0.55 Higher). Narrow trading ranges seen through most of the trading session and sluggish trade volume across the entire livestock complex has given way to late day buyer support in nearby and deferred live cattle futures. This could bring some underlying firm support back into the complex through the rest of the week with traders focusing on fundamental support that could continue to develop through the rest of the week. Beef cut-outs: higher, $1.43 higher (select, $188.66) and up $0.91 (choice, $198.13) with moderate to good demand and light offerings (47 loads of choice cuts, 25 loads of select cuts, 6 loads of trimmings, 15 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 Higher. Activity in the cattle markets remains typically quiet for a Monday with no bids or asking prices developing through the day. It is likely that cash trade will be delayed until the last half of the week, which could push more focus on beef values and the development of futures markets.

FEEDER CATTLE:

Light trading ranges developed Monday with very little market direction developed across the complex. This left prices mixed ($0.25 lower to $25 Higher). Traders remain focused on quiet market direction both inside livestock markets and in outside markets due to the Columbus holiday that has most traders remaining on the sidelines. This is creating the concern that most traders are unwilling to take a stand in either direction, but at the same time, the recent market support seen through the complex is still able to hold, limiting any expected market shift over the near future. CME cash feeder index for 10/6 is $155.35 down $0.22.

LEAN HOGS:

Lean hog futures remained quietly traded as traders returned from the weekend. Futures traded in a narrow range ($0.25 lower to $0.27 higher) with traders unable or unwilling to find a direction early in the week and focusing on the potential of finding additional commercial trader interest stepping back into the market later in the week. Carcass values rallied Monday following gains in all primals. Triple-digit gains in Butts, Ribs and Belly markets led the market higher, allowing the meat markets to focus on increased early week gains. Pork cut-out: $73.54 up $0.93. CME cash lean index for 10/5: $55.77, up 0.44. DTN Projected lean index for 10/6 $56.42 up $0.65.

TUESDAY'S CASH HOG CALL:

Steady to $1 higher. Firm buyer support is expected to redevelop early Tuesday morning with most bids expected to remain 50 cents to $1 per cwt higher. The focus on trade is likely to be seen placed on the ability for traders to move toward increased buyer support through the end of the week and firming pork values at the end of the week. Tuesday's slaughter is expected at 460,000 head with Saturday runs likely near 200,000 head.