GENERAL COMMENTS:
No bids or asking prices are established yet this week in the cash cattle market, but whatever volume may develop on Wednesday will be benchmarked against last week's numbers: Southern live trade at $99 to $100 and Northern dressed business mostly $159 to $160. According to the closing report, the national hog base was $0.38 lower (weighted average $45.39). Corn futures closed 6 cents per bushel lower alongside the geopolitical uncertainty and volatile pullback in crude oil (down $3.85 per barrel). The stock market gained 4 points in the S&P 500, and the index has inched back above 3,000.
LIVE CATTLE
Prices remain brutal for cattle feeders offering ready animals to the diminished packing industry, but futures trading activity during the first two sessions of this week has been a bit more hopeful. The bulk of the fund-based futures short selling seems to have concluded late last week. October live cattle futures gained $1.35 during Tuesday's session, but this still leaves the contract below $100 per cwt. Beef cut-outs Tuesday afternoon were lower to sharply lower, down $0.85 for choice at $219.77 and down $2.66 for select at $193.91, with light to moderate demand and moderate to heavy offerings.
WEDNESDAY'S CASH CATTLE CALL
Steady to $2 higher. Despite the eerily quiet start to this week, the natural direction of this market after last week's lows may point upward for a recovery.
FEEDER CATTLE
October feeder cattle futures were the price leaders in the livestock sector Tuesday, with a spurt of eager trading volume and gains of $3.10 per cwt. It closed the session at $137.30, a recovery of almost $10 per cwt above the contract's August low. Sale barn data is rather sparse at the moment, due to the season and due to the anxiety in the industry, but nevertheless, the CME cash feeder index rose $1.03 for 9/16 to $137.12.
LEAN HOGS
Hog slaughter numbers continue to grow in the United States, up to 488,000 estimated on Tuesday, and this domestic supply scenario will likely keep a lid on the impacts of any bullish international news, including the African swine fever discovery in South Korea, and whatever the rumor of the day may be regarding the trade war with China. The futures market is in a jumpy phase this week, alongside other volatile commodity movements, and Tuesday's losses (as much as $3.00 per cwt in the December lean hog contract) more than gave back Monday's gains. Pork cut-out: $68.21, down $0.45. CME cash lean index for 9/13: $58.48, down $1.23 (DTN Projected lean index for 9/16: $57.49, down $0.99).
WEDNESDAY'S CASH HOG CALL
Steady to $1 lower. The trend in both cutout and cash hog prices has been unrelentingly lower lately.
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