GENERAL COMMENTS:
Monday's markets closed higher in all three livestock contracts, and most surprisingly, even in the lean hog market. Live cattle contracts were expected to close higher with the neutral Cattle on Feed report and robust boxed beef prices, but the lean hog market rallied to surprise many. Prices are lower on the National Direct Afternoon Hog Report, down $1.10 with a weighted average of $51.98. December corn is down 2 3/4 cents per bushel and December soybean meal is up $0.70. The Dow Jones Industrial Average is up 132.66 points and NASDAQ is up 82.87 points.
LIVE CATTLE:
Live cattle futures closed with support intertwined throughout the complex. The expiring October contract closed the highest, up $0.90 at $112.87 and December live cattle closed up $0.52 at $116.60. More and more interest in gaining in the live cattle contracts, with most interest developing in the December 2019 contract. Last week secured the live cattle market's sixth week worth of rallied support. Given that showlists are mixed going into this week, that boxed beef prices are soaring and that packers have plenty of incentive to keep harvesting cattle at a vigorous rate -- cash cattle trade (though still too early to develop) could be set up for higher money again this week. Closing boxed beef prices are higher: choice up $2.46 ($227.90) and select up $0.92 ($200.76) with 81 loads total of boxed beef movement (37.07 loads of choice cuts, 20.83 loads of select cuts, 11.72 loads of trim and 11.55 loads of ground beef). Monday's slaughter totaled 118,000 head, even with both a week and year ago.
TUESDAY'S CASH CATTLE CALL: $1 higher. Tuesday most likely won't have any fat cattle trade, but when trade does occur it will most likely be for higher money this week.
FEEDER CATTLE:
On an estimated run of 6,450 head at Crawford Livestock Market in Crawford, Nebraska, on Friday steers sold unevenly while heifers weighing 450 pounds sold $8.00 higher, 400-pound and 500-pound heifers sold $4.00 to $5.00 higher and 550-pound heifers sold $1.00 higher compared to the previous week. Most calves were preconditioned and weaned right off the cow; demand was considered moderate to good with some coming from bids off the internet. October's expiring contract closed $0.30 lower at $145.40, and the November feeder cattle contract closed $0.35 higher at $145.72. The CME feeder cattle index for 10/25/19: $144.35, down $0.41.
LEAN HOGS:
The lean hog market jumped Monday, letting the noon hour pass and then securing higher prices at the close. Though still very limited in cumulative interest, contracts were able to find a wide-range of support in both nearby and deferred contracts and closed up $0.72 higher in the December 2019 contract. There is a possibility that prices latched onto the momentum building in the cattle contracts. Pork cutouts totaled 282.17 loads with 242.18 loads of pork cuts and 40.00 loads of trim. Pork cutout values: down $0.53 at $76.03. The CME lean hog index for 10/24/19: $65.09, down $0.40.
TUESDAY'S CASH HOG CALL: Despite Monday's board closing higher, it would be a tough game of cards to expect Tuesday's cash hog market to be higher. With packer's margins getting tighter in the hog sector, buyers aren't going to give easy money away.
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