Firm follow-through buying activity is seen in lean hog futures trade following strong price support late last week. Cattle markets have backed away from early support as pressure in feeder cattle markets is leading the market lower. Corn markets are lower in light trade. December corn futures are 2 cents lower. Stock markets are lower in light trade. The Dow Jones is 379 points lower while Nasdaq is down 180 points.
LIVE CATTLE:
Mixed trade continues to be seen in live cattle trade Monday morning. The building pressure across feeder cattle trade has eroded buyer support in deferred contracts for the moment with losses of 2 to 77 cents per cwt scattered through summer and winter 2019 contracts. Firm gains continue to hold in nearby trade given the overall lack of active trade through the entire complex. This may add some additional market volatility through the next couple of days as limited trade interest is expected to move into the live cattle complex in front of the holiday break. Cash cattle interest remains undeveloped with show list distribution and inventory taking the main focus on Monday. It is expected that bids and asking prices will remain undeveloped through the rest of the day. Given the holiday-shortened week, there may be some additional interest moving into the complex sooner than later, with some token bids possible on Tuesday. Both sides would desire to wrap up cash trade before Thanksgiving in order to not reenter the market Friday, but it is yet to be determined if this can be accomplished. Boxed Beef cut-outs at midday are higher, $0.65 higher (select) and up $0.83 per cwt (choice) with light movement of 66 total loads reported (35 loads of choice cuts, 9 loads of select cuts, 8 loads of trimmings, 14 loads of ground beef).
FEEDER CATTLE:
Early price support in feeder cattle trade has slowly eroded with prices holding consistent losses of 30 to 50 cents per cwt. The overall lack of trade movement in the complex is adding to the overall weakness in the complex. This may add some additional late-day pressure as traders seem lethargic and may remain that way through the entire week.
LEAN HOGS:
Moderate buyer activity is trickling into lean hog trade through late morning with February futures gaining the most support and also becoming the most actively traded session. Follow-through support is developing following the limit gains on Friday. Most contracts are 10 to 15 cents per cwt higher as very limited interest is seen through most contract months. This could limit additional direction later in the session, as prices seem content on recent market firmness, but unable to spark any aggressive renewed buyer activity. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.36 lower at $51.24 per cwt with the range from $46.00 to $51.70 on 3,585 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 180 loads selling on the morning report. Pork carcass values added $1.43 per cwt at $69.61 per cwt. Lean hog index for 11/15 is $59.10, down 0.76, with a projected two-day index of $58.51, down 0.59.
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