GENERAL COMMENTS:
Tuesday's cattle futures opened higher, fell lower and then picked up right before closing higher in most contracts. Lean hog markets had a huge day with significant price gains and aggressive slaughter. Hog prices are higher on the National Direct Afternoon Hog Report, up $1.08 with a weighted average of $59.24. December corn is down 4 1/2 cents per bushel and December soybean meal is down $3.10. The Dow Jones Industrial Average is up 236.90 points and NASDAQ is up 100.05 points.
LIVE CATTLE:
Futures logged a sweet turnaround before the day's close. December live cattle was the only contract to not post a gain on the day, closing steady at $113.45; all other contracts captured gains of $0.15 to $0.50. Closing boxed beef prices are up: choice up $0.80 ($218.02) and select up $2.15 ($191.48) with an offering of boxed beef movement totaling 160 loads (61.77 loads of choice cuts, 33.65 loads of select cuts, 20.02 loads of trim and 44.55 loads of ground beef). Still crickets from the country as there is little packer inquiry. Asking prices in Nebraska have been reported at $115 live and $180 dressed.
WEDNESDAY'S CASH CATTLE CALL: Steady to $1.00 higher. Tuesday's close should help feedlots feel confident in their asking prices and make packers wonder if this week will be another $1.00 higher cash cattle week. It's still too early to think prices of more than $1.00 higher would surface, but it isn't unlikely to think packers may put out early bids starting Wednesday or Thursday of $1.00 higher if markets keep performing within Monday and Tuesday's parameters.
FEEDER CATTLE:
Nearby feeder cattle contracts closed steady to $0.55 lower while deferred months closed $0.07 to $0.32 higher. November feeder cattle closed unchanged at $146.07. During the fall run, the feeder market is lucky to have live cattle contracts trading steady, and packers prepared to pay $1.00 higher again this week. Though it is unavoidable, feeder markets have started to be loaded with thousands of calves now entering the market and the market will likely continue to give up some leverage until the fall run wanes. Calves with a little more age have been selling better as there's less fear of stress-induced sickness, and green yearlings continue to be a hot commodity. On an estimated run of 7,762 head (down 49 head from the previous week and up 4,586 head from last year) Oklahoma City sold feeder steers Monday mostly $1.00 to $3.00 higher and feeder heifers were unevenly steady. Demand was moderate, and quality was just plain to average on these feeders. Most buyers were wary of buying short-weaned or unweaned calves as the fall weather can turn any day. The CME feeder cattle index for 10/14/19 was not available at publishing time.
LEAN HOGS:
Tuesdays are typically boring for the livestock complex, but the lean hog sector secured huge gains today with December lean hogs closing $3.00 higher at $72.12. All contracts except the furthest deferred months of December 2020 (down $0.30) and February 2021 (down $0.37) posted gains varying from $0.20 to $3.00. Pork cutouts totaled a substantial 374.13 loads with 336.94 loads of pork cuts and 37.19 loads of trim. Pork cutout values: up $0.12 at $78.06. CME lean hog index for 10/11/19: $62.11 up $0.93.
WEDNESDAY'S CASH HOG CALL: Steady. Given the fact that Tuesday's gains were by significant amounts, it wouldn't be unlike the market to step back and catch its breath before another move was made.
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