Cattletrade is struggling with contracts near the lows of the day. The idea that packers would be willing to step up and purchase at higher prices has not provided increased optimism so far today. Packer margins have been nearing $200 this week compared to $50 a month ago, but that is not spurring futures higher, keeping contracts entrenched in the sideways trading pattern. Hogs are mostly dead in the water, finding no strength from the potentially positive news about tariffs. Futures have so far posted an inside trading day. Corn futures are higher again due to weather concerns and tariff news. The DOW is down 195 points with the NASDAQ down 98 points.
LIVE CATTLE:
Live cattle futures are struggling with little incentive for traders to push prices higher. Futures show limited losses with earlier strength not holding. December futures hold a $2.00 premium above last week's cash. Cash cattle trade is going down to the wire as usual with feedlots hoping to capitalize on the ability of buyers to pay higher. Boxed beef cutouts at midday are mixed with choice up $0.23 at $218.78 and select down $0.59 at $203.66. Movement has been light at 48 loads reported (22 loads of choice cuts. 17 loads of select cuts, 3 loads of trimmings, and 6 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are mirroring their live counterparts with little incentive to move the market prior to the weekend. Futures have posted a lower high and lower low for the trading range on Friday, which may keep activity a bit negative. Higher corn futures are also applying some pressure. The November contract remains in a downtrend while later contracts establish a sideways trading pattern.
LEAN HOGS:
Lean hog futures are mixed with some unwinding of spreads noted. The market might be stair-stepping lower again, unable to generate optimism from the news of future negotiations between the U.S. and China. The National Pork Plant report posted 185 loads sold. Pork carcass values fell $1.43 per cwt to $73.96 per cwt. The lean hog index for 10/31 is $64.07, up $0.17 with a projected index of $64.12, up $0.05.
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