Strong triple-digit pressure has swept through the livestock complex through the morning. This is adding increased pressure through the entire market, allowing for potential weakness to be seen later in the week. Corn markets are lower in light trade. December corn futures are 2 cents lower. Stock markets are mixed in light trade. The Dow Jones is 18 points lower while Nasdaq is up 17 points.
LIVE CATTLE:
Moderate pressure is seen through the complex with December and February futures holding a $1.05 per cwt loss. Light trade is expected to be seen through the rest of the Tuesday session with current trading ranges likely to hold. The firm pressure in feeder cattle trade continues to erode any sense of stability trying to develop in live cattle trade. Cash cattle interest is still undeveloped with bids and asking prices yet to be seen. It is possible that a few token bids may develop through the end of the day, or early Wednesday, but significant activity is not expected until midweek or later. Boxed Beef cut-outs at midday are higher, $1.04 higher (select) and up $1.19 per cwt (choice) with light movement of 70 total loads reported (38 loads of choice cuts, 15 loads of select cuts, 9 loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Firm losses have continued to develop through the feeder cattle futures. October contracts are holding limited pressure, with the rest of the market posting triple-digit losses. The underlying pressure is eroding previous market buyer interest, but prices are still not below support levels, which would trigger further liquidation.
LEAN HOGS:
Strong triple-digit losses have developed through the morning Tuesday with spot month October futures steady, while all other nearby contracts have posted losses of $1 to $1.65 per cwt. The underlying pressure seen through the complex may add even more uncertainty to the complex as traders look for additional direction. Even with current market pressure, prices continue to hold well within the sideways trading range established through the month of September. This may keep prices shifting higher and lower within a moderate range through the upcoming weeks. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is $0.48 higher at $63.85 per cwt with the range from $60.00 to $65.25 on 4,561 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $1.50 higher at $64.86 per cwt with the range from $60.00 to $65.25 on 1,620 head reported sold. The National Pork Plant Report posted 221 loads selling on the morning report. Pork carcass values gained $1.13 per cwt at $80.06 per cwt. Lean hog index for 10/5 is at $69.36 up 0.05 with a projected two-day index of 69.33, down 0.03.
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