Firm market gains have developed across the
entire complex with traders focusing on triple-digit gains sweeping
through the entire complex. There is growing support in live cattle and
lean hog trade based on a combination of futures and cash market
support. Corn markets are higher in light trade. December corn futures
are 7 cents higher. Stock markets are lower in light trade. The Dow
Jones is 133 points lower while Nasdaq is down 66 points.
LIVE CATTLE:
Strong underlying support is slowly developed
midday Friday in live cattle trade. This price support is offsetting the
previous market pressure earlier in the week and helping traders to
cover short positions. Triple-digit gains are seen in nearby trade with
lightly traded October contracts holding a $1.65 per cwt rally based on
strong underlying support moving into all contracts. Cash cattle trade
is starting to develop in most areas through late morning with deals
seen at $114 to $115 per cwt live basis and $180 per cwt dressed. This
is $3 to $6 per cwt higher than last week's price levels, and helping to
support underlying bids in other areas. Some additional trade may
develop through the end of the day. Asking prices are holding at $115
and higher live and $180 dressed on cattle still on showlists. Boxed
Beef cut-outs at midday are higher, $1.02 higher (select) and up $0.62
per cwt (choice) with light movement of 48 total loads reported (26
loads of choice cuts, 6 loads of select cuts, 4 loads of trimmings, 12
loads of ground beef).
FEEDER CATTLE:
Active buying midday Friday has offset early
market pressure that has swept through the complex over the last couple
of days. End-of-week short covering was the initial spark that led to
increased market support Friday morning, but additional buying is being
fueled by active support through nearby trade. November futures are
holding a $1.37 per cwt rally, moving prices back above $155 per cwt.
Feeder cattle futures remain stuck in a wide sideways trend, and the
recent shifts higher are sustaining this market move.
LEAN HOGS:
Firm gains have quickly developed midday Friday
in nearby lean hog futures as traders seemed to quickly dispel any
growing concern that follow-through weakness will move into the complex
through the end of the week. Nearby trade is holding prices 50 cents to
$1 per cwt higher with traders looking for additional follow through
support based on the market rally midweek. Even though trade remains
sluggish and prices are not expected to show significant additional
improvement through the end of the session, this is setting the tone for
renewed buying activity early next week. Cash prices are lower on the
National Direct morning cash hog report. The weighted average price is
$0.17 lower at $56.85 per cwt with the range from $55.50 to $57.63 on
4,937 head reported sold. Cash prices are unreported due to
confidentiality on the Iowa/Minnesota Direct morning cash hog report.
The National Pork Plant Report posted 204 loads selling on the morning
report. Pork carcass values slipped $0.12 per cwt at $77.05 per cwt.
Lean hog index for 10/24 is at $65.03 down 0.43 with a projected two-day
index of 64.61, down 0.42.
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