Tuesday Midday Livestock Market Summary - Cattle Trade Shifts Lower

Strong losses have quickly developed in cattle trade through the morning Tuesday. Traders seem to be focusing on adjusting markets lower following early-week gains, and surrounding pressure in other commodity and financial markets. Hog trade has continued to gain support with traders still focusing on the oversold status in the complex over the last couple of weeks. Corn markets are higher in light trade. December corn futures are 3 cents higher. Stock markets are mixed in light trade. The Dow Jones is 305 points lower while Nasdaq is down 76 points.

LIVE CATTLE:

Live cattle futures remain lightly traded with outside market pressure having a greater impact on the direction of live cattle trade. Although October futures seem to finding some stability with losses limited to 12 cents per cwt, the rest of the complex is holding 50 to 80 cent losses as traders adjust to surrounding markets. Sharp triple-digit losses in feeder cattle has impacted the live cattle complex greatly, but so has the 300 point tumble in the Dow Jones Index. Little to no change has developed in market fundamentals with outside market factors driving trader intentions. Cash cattle activity remains sluggish with asking prices still hard to pin down. A few token bids have developed in Nebraska at $174 per cwt. It is likely that more bids will be seen midweek, although active trade may not be seen until the last half of the week. Boxed Beef cut-outs at midday are mixed, $0.71 lower (select) and up $1.27 per cwt (choice) with light movement of 68 total loads reported (29 loads of choice cuts, 17 loads of select cuts, 4 loads of trimmings, 17 loads of ground beef).

FEEDER CATTLE:

Strong triple-digit losses have quickly developed in feeder cattle trade Tuesday morning with October contracts the only futures contract not posing triple-digit losses. The overall lack of activity in spot month October contracts has caused most traders to move onto November and January futures which are holding $1.30 and $1.25 per cwt losses respectively. This pullback from sharp gains seen Monday is creating some additional short term uncertainty into the market as traders try to establish a more defined trading range.

LEAN HOGS:

Strong morning buyer support has continued to develop through the lean hog complex with commercial traders moving back into the market to expand the aggressive support seen early in the week. December lean hog futures are leading the complex higher with a midday rally at $1.50 per cwt higher the focus on price spreads between nearby and deferred contracts continue to focus on market support early in the week. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is $0.05 higher at $57.99 per cwt with the range from $51.00 to $58.50 on 11,973 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $0.56 higher at $58.19 per cwt with the range from $51.00 to $58.50 on 7,839 head reported sold. Pork carcass values added $0.04 per cwt at $78.43 per cwt. Lean hog index for 10/19 is at $66.43 down 0.79 with a projected two-day index of 65.95, down 0.48.

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