Monday Midday Livestock Market Summary - Cattle Futures Lead Rally Monday

Strong gains quickly moved into livestock trade early Monday morning. The underlying support seen through the complex has continued to hold as traders are looking for additional direction and buyer interest following the active pressure last week. This may help to rekindle deeper market support through the end of the month. Corn markets are higher in light trade. December corn futures are 2 cents higher. Stock markets are mixed in light trade. The Dow Jones is 195 points lower while Nasdaq is up 9 points.

LIVE CATTLE:

Strong morning gains have quickly moved through live cattle trade with early gains holding triple-digit market shifts in most nearby contracts. The focus on increased trade activity and gains over $2 per cwt in feeder cattle trade is quickly causing buyers to return to the live cattle market. Focus on lighter-than-expected cattle in feedlots at the end of September is sparking some underlying support through the entire complex. Cash cattle interest is quiet with show list distribution the extent of market activity. It may be midweek or later before active bids and asking prices are seen and late in the week before trade develops. Boxed Beef cut-outs at midday are higher, $2.65 higher (select) and up $0.88 per cwt (choice) with moderate movement of 49 total loads reported (16 loads of choice cuts, 14 loads of select cuts, 10 loads of trimmings, 9 loads of ground beef).

FEEDER CATTLE:

Gains in the feeder cattle futures complex is leading the entire livestock market higher Monday morning. The focus on decreased placements in the month of September compared to year-ago levels initiated the buying activity. But this may not be enough to spark active support through the rest of the week as traders will need some additional information and help fundamentals through the end of the month.

LEAN HOGS:

Firm gains are holding in lean hog futures trade following sluggish mixed trade early in the session. The strong market rally in cattle trade seen Monday morning has helped to bring about increased buyer activity through the entire complex. Even though prices have pulled back from session highs, the focus on renewed buyer activity is helping to solidify trade support early in the week, which could spark some underlying movement through the rest of the complex. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 135 loads selling on the morning report. Pork carcass values added $1.75 per cwt at $80.17 per cwt. Lean hog index for 10/18 is at $67.22 down 0.54 with a projected two-day index of 66.43, down 0.79.

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