Moderate to strong gains have quickly developed across the lean hog and feeder cattle complex Monday morning as continued spill over support moved through the market following last week's gains. Limited trade is seen in live cattle trade with the overall lack of support in October and December contracts seemingly pulling some traders back away from the market. Corn markets are higher in light trade. December corn futures are 9 cents higher. Stock markets are higher in light trade. The Dow Jones is 189 points higher while Nasdaq is up 12 points.
LIVE CATTLE:
Light to moderate buyer support is still seen through the live cattle complex. Nearby contracts are showing limited movement with prices seen 5 to 12 cents per cwt higher in the October and December contracts. The rest of the complex is showing some slightly more aggressive market support with prices 30 to 50 cents per cwt higher in limited trade. Cash cattle markets remain undeveloped early in the week with bids and asking prices unlikely to be seen until midweek or later. The development of cash trade last week steady to weak compared to the previous week may limit early support despite the moves higher in futures trade. Boxed Beef cut-outs at midday are unreported at this time.
FEEDER CATTLE:
Feeder cattle have pushed higher in most contracts Monday morning with front month October futures the only contract holding a 10 cent loss. The rest of the market remains firmly higher with gains of 52 to 87 cents per cwt higher as traders continue to test short-term resistance levels during early October trade. Spring and summer 2019 contracts have broken through short-term highs, with most of these contracts extending contract highs through the first trading session of October. November futures still remain approximately 50 cents under long term resistance levels, but a break above these levels over the next couple of days could quickly spark some underlying buyer support through the entire market.
LEAN HOGS:
Strong follow-through buying support has quickly moved back into the lean hog complex as commercial traders have quickly moved into the market during the first trading session of October. The continued support that spilled over from late last week seems to be sparking not only commercial buyer support, but also is helping to instill some confidence in noncommercial traders. December futures are leading the market higher with a $2 per cwt rally, moving to $59.92 per cwt, in active trade. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.05 lower at $63.05 per cwt with the range from $60.00 to $63.50 on 4,769 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 179 loads selling on the morning report. Pork carcass values are unreported at this time. Lean hog index for 9/27 is at $66.45 up 0.81 with a projected two-day index of 67.26, up 0.81.
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