GENERAL COMMENTS:
Corn contracts latched onto more gains while cattle and lean hog contracts took the back burner. With anxious anticipations of a new month and a lofty growing corn sector, cattle and lean hog markets have been wary about taking off too soon. December corn futures closed 4 1/2 cents higher. Hog prices are up Tuesday afternoon on the National Direct Afternoon Hog Report, up $0.45, with a weight average of $49.36. The Dow Jones Industrial Average is down 306.33 points and NASDAQ is down 79.35 points.
LIVE CATTLE:
How the cattle market will correct its overbought sector could be a bit of a whirlwind. Whether the market will make hard significant changes in a matter of a couple of days or will take its sweet precious time through most of the month is unknown. In the respect to feeder cattle, one would wish that the market would get with it and level out sooner rather than later with the heart of the fall run being a mere two weeks away. Live cattle contracts closed lower with the exception of the October 2019 contact, which closed $0.05 higher, the rest of the contracts closed anywhere from $0.15 to $0.57 lower. A few head of cattle sold in Iowa Tuesday for $106 live and $165 dressed. Live cattle equivalent index: $136.53, up $0.13.
Afternoon boxed beef prices are mixed: choice up $1.03 ($213.47) and select down $1.06 ($186.05) with a large offering totaling 156 loads total (52.74 loads of choice cuts, 49.38 loads of select cuts, 34.82 loads of trim and 19.09 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Steady to $1 higher. With lofty asking prices of $108 established in Texas and $110 live and $175 dressed in parts of Nebraska, feedlots are wanting the money. Packers now able to use October contracts will be slow to jump on board, but, with plenty of time to still establish the week's market, scenarios of higher cash prices aren't out of line.
FEEDER CATTLE:
Though the market early this week hasn't been cheery for feeder cattle, the last Cattle on Feed Report clearly indicated that there will be plenty of placements to move this time around. Feeder cattle futures closed lower, ranging from losses of $0.92 to $1.75. With feedlots placing higher asking prices again this week, there's potential for the feeder cattle market to be able to ride on the shirttails of live cattle, and if that market can secure cash cattle gains, feeder cattle could rally then.
LEAN HOGS:
Monday's market rallied significant gains, but Tuesday's market ended up giving most of the gained market position back and closed $2.23 lower than Tuesday morning's open. Nearby and deferred contracts all suffered, losing anywhere from $0.20 to $2.90. Pork cutout: up $1.56 at $75.29. Lean hog equivalent index: $80.03, up $1.56.
WEDNESDAY'S CASH HOG CALL: Steady. With last week's lofty USDA Hogs and Pigs report, finding market ready hogs isn't going to be a problem, and until the rally of the corn market subsides, lean hog contracts will probably just coast along.
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