Strong market support is seen in nearby live cattle futures. This is helping to draw additional trade volume to the complex. Light but firm support is seen in both feeder cattle and lean hog markets as traders try to keep pace with the rest of the livestock complex as it moves higher. Corn prices are steady to higher in light trade. December corn futures are 1/4 cent per bushel higher. Stock markets are mixed in light trade. Dow Jones is 73 points higher while Nasdaq is down 2 points.
LIVE CATTLE:
Strong triple-digit gains have developed across the live cattle futures complex with the main focus on October through February contracts. This is helping to spark additional commercial buyer support through the entire market although traders focus on December futures moving above $120 per cwt. This may have additional implications to the rest of the complex as the December futures take over as spot month contracts following the expiration of October futures. Cash cattle activity is starting to become more focused with bids becoming evident in all areas. Bids are seen at $111 live basis and $174 dressed basis. There is very little interest by feeders to aggressively move into the market at this point, potentially delaying trade until late Friday. Asking prices are seen at $116 and higher live basis in the South and $180 and higher in the North. Beef cut-outs at midday are mixed, $0.18 lower (select) and up $2.25 per cwt (choice) with active movement of 101 total loads reported (69 loads of choice cuts, 18 loads of select cuts, no loads of trimmings, 14 loads of ground beef).
FEEDER CATTLE:
Firm buyer support continues to be seen in feeder cattle futures at midday with gains holding 60 to 80 cents per cwt. This is a abrupt change from the narrowly mixed market structure seen early in the session. Strong triple-digit gains seen in live cattle futures has helped to bring renewed support back to the feeder cattle complex, although at this point, most buyer activity remains sluggish at best.
LEAN HOGS:
Lean hog futures have broken out of the narrowly mixed trading ranges seen over the last couple of hours with firm buyer support developing in nearby contracts. This is helping to draw additional price support into the complex with nearby futures trading 40 to 60 cents per cwt higher at midday. Deferred futures remain more sluggish with prices 10 to 20 cents per cwt higher. Additional uncertainty may develop surrounding the pressure in morning cash price levels. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.19 at $65.37 per cwt with the range from $59.00 to $66.50 on 4,332 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.13 at $65.61 per cwt with the range from $63.50 to $66.50 on 1,925 head reported sold. The National Pork Plant Report reported 111 loads selling with prices gaining $1.23 per cwt. Lean hog index for 10/24 is at $67.32 up $1.22 with a projected two-day index of $68.28, up $0.96.
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