It's always interesting to see Monday's market after a Cattle on Feed Report comes out. Sometimes the market can be in an utter tailspin, but Friday's neutral COF report is bearing little market implication to Monday's board. Live cattle contracts are up while feeder cattle and lean hog contracts are lower. December corn is down 2 1/4 cents per bushel and December soybean meal is up $1.30. The Dow Jones Industrial Average is up 116.00 points and NASDAQ is up 82.25 points.
LIVE CATTLE
Live cattle markets are welcoming the new week with ease and confidence as most markets are trading anywhere from $0.10 to $0.72 higher. Friday's neutral Cattle on Feed Report isn't bearing any positive or negative reaction into the market. Overall the live cattle sector is sitting in a fine position as boxed beef prices are soaring -- last week choice cuts were $7.40 higher and select cuts were $6.80 higher, and slaughter remains snappy.
Formula totals for last week were mixed, higher in Texas and Nebraska, but lower in Kansas: Kansas 79,021(down 1,530), Nebraska 59,487(up 3,572), Texas 98,321(up 5,607). Total trade volume was also mixed larger in Kansas and Texas, but lower in Nebraska: Kansas 97,772(up 10,774), Nebraska 85,134(down 1,543), Texas 107,138(up 11,683). New showlists appear to be mixed, higher in Texas, Nebraska/Colorado, but lower in Kansas. Bids and asking prices have not been established as of yet. Significant trade volume will likely be delayed until the second half of the week.
Dressed weights for the week ending October 12 show that heifer carcasses were up four pounds at 828 pounds, while steer carcasses were only up two pounds at 901 pounds total. Slaughter last week totaled 640,000 head, which was down 1,000 head from the previous week, but 5,000 head more than the same week a year ago.
Midday boxed beef prices are up: choice up $2.07 ($227.51) and select up $0.18 ($200.02). Monday's midday boxed beef movement totals only a mere 35 loads 15.72 loads of choice cuts, 7.82 loads of select cuts, 5.50 loads of trim and 5.87 loads of ground beef).
FEEDER CATTLE
Given that the feeder cattle market is saturated with bawling calves and that most of the hard, green yearlings have already been sold, it wouldn't be unlikely to see feeder cattle prices remain steady or weaken in the country side this week. October's feeder cattle contract expires on Thursday and the only contract trading higher is the November board, up $0.12 at $145.50. January 2020 through May 2020 contracts are down $0.17 to $0.40.
LEAN HOGS
Nearby contracts are trading higher Monday morning while deferred contracts struggle to find support. December lean hogs are up $0.35 at $65.27, and February 2020 lean hogs are up $0.12 at $73.47. This week is anticipated to be another rough week in the lean hog complex as supply outweighs demand and no clear sign of export opportunities arise.
The projected lean hog index for 10/25/19 is down $0.97 at $64.12, and the lean hog index for 10/24/19 is down $0.40 at $65.09. Prices are lower on the National Direct Morning Hog Report, down $0.67 with a weighted average at $52.41, ranging from $48.00 to $53.16 on 5,119 head sold and a five-day rolling average of $54.92. Pork cutouts totaled 116.97 loads with 101.68 loads of pork cuts and 15.29 loads of trim. Pork cutout values are up $0.38 $76.94.
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