Sharp gains have quickly developed and held across the entire market. October futures lead the complex higher moving $4.57 per cwt higher at midday. This aggressive support and spillover interest into other contracts is helping to push all cattle markets sharply higher. Lean hog futures remain firm with gains of 20 to 50 cents per cwt in most contract months. Corn prices are steady to higher in light trade. December corn futures are steady. Stock markets are lower in light trade. The Dow Jones is 77 points lower while Nasdaq is down 10 points.
LIVE CATTLE:
Sharp gains in live cattle trade have been led through the morning by October live cattle futures holding gains above $4 per cwt. Currently front month futures are trading $4.57 per cwt as traders quickly try to narrow the premium held by the December contracts as the October futures gets ready to expire at the end of the month. Because October futures are in delivery, daily trading limits do not apply to these contracts, allowing for the gains over $4.50 per cwt. The rest of the complex is holding gains from $1 to $3 per cwt higher in moderate trade activity. Cash cattle markets remain quiet following moderate to active trade which developed late Friday. With prices surging %6 to $10 per cwt at the end of last week, it appears that feeders will become even more aggressive going into the month of November. Show list distribution and inventory taking is the main focus Monday with bids and asking prices likely to remain undeveloped through the day. Beef cut-outs at midday are higher, $1.91 higher (select) and up $0.14 per cwt (choice) with light movement of 37 total loads reported (18 loads of choice cuts, 13 loads of select cuts, no loads of trimmings, 6 loads of ground beef).
FEEDER CATTLE:
Strong and aggressive gains have quickly developed in all feeder cattle trade with buyers focusing on support from the live cattle market. Trade has been seen at or around $3 per cwt through most of the late morning, although buyer interest has slowed at midday with prices holding gains of $2 to $2.90 per cwt. The strong upward market move is focusing on the aggressive surge in cash cattle trade seen Friday and the expectation that additional buyer interest will continue to actively develop.
LEAN HOGS:
Moderate buyer support has stepped into the lean hog futures trade following extremely strong support across the cattle markets and firm cash buyer activity which is seen early Monday morning. Nearby gains are holding 60 cent per cwt rallies, while the rest of the complex remains lightly traded, but able to overcome early mixed trade with prices 15 to 35 cents per cwt higher. Very little additional market direction is expected to be seen through the Monday session with all eyes focused on the cattle market. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.79 at $65.13 per cwt with the range from $58.50 to $65.36 on 4,836 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $1.23 at $64.91 per cwt with the range from $58.50 to $65.25 on 1,786 head reported sold. The National Pork Plant Report reported 132 loads selling with prices gaining $1.32 per cwt. Lean hog index for 10/26 is at $68.94 up $0.66 with a projected two-day index of $69.09, up $0.15.
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