Triple-digit gains have flooded into the cattle complex with the feeder cattle market quickly leading the market higher. This move has quickly adjusted from the narrowly mixed market moves seen early in the session. Live cattle futures are trading near $2 per cwt higher in nearby futures with the focus on additional longer term support possible through the week. Corn prices are steady to higher in light trade. December corn futures are 1/4 cent per bushel higher. Stock markets are higher in light trade. Dow Jones is 190 points higher while Nasdaq is up 16 points.
LIVE CATTLE:
Triple-digit gains have held in live cattle futures late Tuesday morning following aggressive buyer support flooding into the feeder cattle complex. Midday gains are holding support of $1.60 to $2 per cwt with traders focusing on the ability to regain losses over the last week. Nearby contracts are testing short-term resistance levels, but it is uncertain if additional buyer interest will move back into the market before closing bell. Cash cattle activity remains quiet with the bids and asking prices generally undeveloped this early in the week. It is expected that some cattle are priced at $115 live basis although it may be midweek or later before any significant interest is shown. The strong support in futures trade has helped to draw buyer support back into the market, but little interest has been shown by packers. Beef cut-outs at midday are higher, $1.07 higher (select) and up 1.01 per cwt (choice) with light movement of 71 total loads reported (39 loads of choice cuts, 13 loads of select cuts, 7 loads of trimmings, 12 loads of ground beef).
FEEDER CATTLE:
Strong buyer support has flooded into the feeder cattle complex late Tuesday morning with increased buyer support quickly focusing on the increased ability to draw technical and fundamental support back during early trade. The ability to move prices above the narrowly mixed support seen during the first hour of trade has broken loose widespread buyer support which helped to spark gains of $3 to $3.50 during most of the morning. It is uncertain just how much follow-through support will develop in the last hour of trade and if this will help to spark increased activity through the rest of the week.
LEAN HOGS:
Firm gains have held in nearby lean hog futures trade with prices 20 to 55 cents per cwt higher at midday. This overall support through the complex has brought back unified support to the hog market. There is very little long term support seen in the market at this point with deferred contracts holding 10 to 20 cent gains. But this is helping to keep buyers focused on the ability to move markets higher through the week based on fundamental support. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.16 at $65.21 per cwt with the range from $59.00 to $66.00 on 11,527 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.17 at $65.52 per cwt with the range from $59.00 to $66.00 on 6,426 head reported sold. The National Pork Plant Report reported 227 loads selling with prices adding $0.56 per cwt. Lean hog index for 10/20 is at $65.23 up $1.02 with a projected two-day index of $66.10, up $0.87.
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