Tuesday Closing Livestock Market Summary - Markets Close Higher

GENERAL COMMENTS:

Gains were posted across all corners of the livestock sector Tuesday. Lean hog contracts claimed the day with the highest gains, though cattle contracts welcomed the support as well. Hog prices are up $2.28 on the National Direct Afternoon Hog Report, with weighted average of $52.01. December corn is up 8 3/4 cents per bushel and December soybean meal is up $4.80. The Dow Jones Industrial Average is down 148.88 points and NASDAQ is down 77.41 points.

LIVE CATTLE:

For the most part, live cattle futures closed higher, up $0.20 to $0.37 in most contracts, though December live cattle closed $0.35 lower at $110.85. There's starting to be some interest in the February and April 2020 contracts as many know that fat cattle prices typically "ring-the-bell" in the spring of the year. Cash cattle have yet to trade this week, bids and asking prices are pretty slim as both cattlemen and packers look to the end of the week to set the tone once again. Tuesday afternoon boxed beef prices are higher: choice up $2.51 ($213.60) and select up $1.15 ($187.06) with a moderate offering of movement totaling 125 loads (45.01 loads of choice cuts, 31.52 loads of select cuts, 22.17 loads of trim and 26.24 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL: $1 higher. At the absolute earliest, bids could start circling the country side Wednesday, and with a strong closing market on Tuesday, Wednesday morning may just open to a strong market giving the cash market another indication to sell higher.

FEEDER CATTLE:

Feeder cattle contract jumped on the bandwagon Tuesday and closed mostly higher, with a slight exception for the May 2020 contract, which closed only two cents lower. November feeder cattle closed $0.32 higher at $141.25. January 2020 is starting to grab some attention as a handful of traders start to put money in the upcoming year. CME feeder cattle index not yet updated.

LEAN HOGS:

Lean hog contracts closed significantly higher. December lean hogs closed $3.15 higher at $67.40, with all contracts posting gains ranging from $0.70 to $3.15. Prices remain below the 100-day and 40-day moving averages so if this spike could incentive prices to climb $3 higher, pork producers would feel better being at least above the 40-day average of $64.03. Pork cutout: down $0.30 at $77.45. CME Lean Hog Index for 10/04/19: $59.22, up $0.84.

WEDNESDAY's CASH HOG CALL: $1 higher. The lean hog market is itching for higher prices and given the support from the futures market, Afternoon Hog Report and China officials looking eagerly to make a deal, prices may just bat higher again.

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