Monday Midday Livestock Market Summary - Hog Futures Rally Monday Morning

Strong renewed buyer support has quickly swept through lean hog futures with prices holding gains from $1 to $2 per cwt through the morning. Cattle markets are much more subdued, although the firming support in live cattle futures could help to bring additional interest to the entire complex. Corn markets are higher in light trade. December corn futures are 3 cents higher. Stock markets are lower in light trade. The Dow Jones is 40 points lower while Nasdaq is down 45 points.

LIVE CATTLE:

Buyer support has redeveloped in live cattle trade at midday following narrow losses seen during most of the morning. Prices are mostly higher with prices still holding a moderate range from 27 cents lower to 50 cents higher. December contracts have been able to develop the most aggressive buyer activity, helping to bring additional support to the complex. Despite strong pressure last week, prices still remain well within the wide sideways range seen through the past two months. Cash cattle activity appears to be done for the week following light to moderate trade in all areas Thursday. Cash cattle interest is quiet Monday following light to moderate trade that developed through the last half of the week last week. Both sides are unlikely to show much interest with show list distribution and inventory taking focus of the day. Boxed Beef cut-outs at midday are mixed, $0.61 lower (select) and up $1.48 per cwt (choice) with moderate movement of 51 total loads reported (33 loads of choice cuts, 12 loads of select cuts, no loads of trimmings, 5 loads of ground beef).

FEEDER CATTLE:

Follow-through price pressure has been seen through most of the morning despite an early attempt to bring some stability back to the complex during the first few minutes of trade. Feeder cattle futures are focusing on the renewed buyer support in the grain complex that has pushed corn and soybean markets higher through morning activity. Losses through the complex have held in a moderate range from 70 cents to $1 per cwt, with very limited interest in market stability through the end of the session.

LEAN HOGS:

Sharp gains continue to hold across all lean hog futures with triple-digit gains seen in all remaining 2018 and all 2019 contracts. Spot month December contracts are leading the complex higher with a $1.97 per cwt rally. The sharp losses seen last week has left the entire complex oversold, with the focus on increased buyer support moving back into the complex through the entire session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $1.03 lower at $60.37 per cwt with the range from $55.00 to $61.40 on 5,158 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $1.82 lower at $58.76 per cwt with the range from $55.00 to $61.25 on 1,780 head reported sold. The National Pork Plant Report posted 118 loads selling on the morning report. Pork carcass values gained $1.42 per cwt at $81.46 per cwt. Lean hog index for 10/11 is at $68.99 down 0.29 with a projected two-day index of 68.75, down 0.24.

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