GENERAL COMMENTS:
It's a legitimate concern to be worried about where exactly the trade arrangements sit with China and how much longer things are going to take before a signed, sealed and delivered agreement is reached, but despite outside market influence, livestock sectors surge on. Hog prices are up on the National Direct Afternoon Hog Report, up $0.89 with a weighted average of $57.50. December corn is steady and December soybean meal is steady. The Dow Jones Industrial Average is down 29.23 points and NASDAQ is down 8.39 points.
LIVE CATTLE:
Live cattle markets secured another win through Monday's closing. December live cattle closed $1.30 higher at $113.45 and is well above the 40-day moving average of $102.79 and 100-day moving average of $105.73. After last week's $3.00 rally, and the $12.00 rally since the Tyson Packing Plant fire, one must step back and wonder how much higher are things going to go? Will there start to be some sideways trade until the new year or will there be a retraction before another upward trend is set? While all these things are quite possible, we do know that substantial gains like we've seen the last couple of weeks are probably unrealistic until 2020. It wouldn't be unlikely to see $1.00 gains here and there, but securing $3.00 gains each and every week would be a bit of a stretch. A few early asking prices have surfaced at $115 in Nebraska and $180 dressed.
Afternoon boxed beef prices are up: choice up $1.56 ($217.22) and select up $0.65 ($189.33) with a light offering of boxed beef movement totaling 82 loads (46.75 loads of choice, 14.41 loads of select, 6.94 loads of trim and 14.07 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: $1 Higher. It's unlikely to see any fat cattle trade Tuesday, but if there is some it will probably be for steady to $1.00 higher prices.
FEEDER CATTLE:
It will interesting to see next week's Cattle on Feed summary and how many feeders have been placed into new feedlots. Though the weather has caused some producers pain, all and all the markets reporting sales early this week are holding up well. On an estimated run of 6,400 head of (up 2,871 head from last week) Joplin Regional Stockyards called steer and heifer calves steady and yearlings steady to $2.00 higher. They called demand moderate for calves and good for yearlings. November feeder cattle closed $1.82 higher at $146.07 will all nearby and deferred contracts also locking in gains. CME feeder cattle index for 10/11/19: $144.27, up $0.64.
LEAN HOGS:
Playing it safer than the other livestock contracts, most lean hog contracts captured gains of $0.15 to $0.60 except for December lean hogs which are down $0.47 at $69.12. The market was extremely quite for the lean hog sector, which could be because of the national holiday or because of uncertainty floating around the China trade agreement. Pork cutouts: up $0.42 at $77.94. Pork cutouts totaled 262.43 loads with 224.55 loads of pork cuts and 37.88 loads of trim. CME lean hog index 10/10/19: $61.18, up $0.53.
TUESDAY'S CASH HOG CALL: $1 higher. With the understanding that China is to begin purchasing agriculture products as early as this week, pork markets may be able to secure and rely on the agreement after all.
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